This morning, the S&P 500 index e-mini futures (ES Z1) are trading higher by 9.00 points to 1227.00 per contract. While the markets are starting higher before the opening bell, it is important to note that the markets started higher yesterday as well and later rolled over. Today is quadruple witching options expiration. This is when options are scheduled to expire on stock index futures, stock index options, single stock futures, and stock options. Basically, everything possible option is expiring today. This week has been very volatile with mostly downward pressure, therefore, traders should not take anything for granted today. These markets will most likely be very volatile in the first half of the day.
Last night, the Asian stock indexes rebounded for the most part. The highly followed Shanghai Index (China) finished higher by 2.02 percent. This could help the Chinese ADR’s trade higher this morning. The key is see if the U.S. markets can hold up. On the flip side, the Sensex Index (India) finished the session lower by 2.18 percent. This tells us that the Indian ADR’s will be under pressure this morning is the U.S. markets start to weaken. If the U.S. markets hold steady then the Indian ADR’s are likely to hold up. Most Indian and Chinese ADR’s are oversold in the near term.