Earlier this morning we tweeted out the following images from our Morning Lineup report (available to all Bespoke Premium or Bespoke Institutional clients) pointing out how the overnight and pre-market pattern from Tuesday into Wednesday was nearly a mirror image of the overnight to pre-market pattern of the prior day. Heading into the day Tuesday, equities began to rally shortly into the Asian trading day and picked up steam right up until the US open. Last night, our global composite intraday equity chart was right around flat at the open in Asia but then quickly started to lose ground and drifted lower right up until the US open.
Interestingly enough, just as the overnight patterns heading into each of the last two trading days were mirror images of each other, so were the intraday open to close chart patterns. On Tuesday (5/22), the DJIA opened at its highs of the day and drifted lower throughout the day before really selling off into the close. Then today (5/23), the S&P 500 opened right near its lows of the day only to pick up steam late in the session and closing right near the highs of the day!
This all reinforces the point that unless there is a major catalyst/event behind a move, what happens in the futures markets often has little bearing on what actually happens during the regular trading day.