Mid Day S&P500 Futures Update (SPX)

Well well well.... The Democrats held onto the Senate and the GOP took the house to clown town... Looks like gridlock might be an issue and the market did not jump 300 points higher today as some expected or predicted. The price action today must be taken with a grain of salt as FOMC will surely throw some volatility in the fairly thin chowder at 2:15.

Overnight we had a massive futures ramp to the 1196.50 level, nearly making YTD highs in the overnight session before someone with brains slammed the ES down back into the hole it came out of. The open today was very quiet with downward skew where she caught bids at 1190.50 taking it up to 1192.75 before getting slammed on volume down to 1189. She trickled around until 1190s were sold on volume down to 1186.

1186s were bought small size up to 1189 before more volume sold them down to 1185. 1185s were bot on low volume and carried to 1188.75 before being sold again.

NYC is at lunch so volume is muted, i would assume most traders are taking later lunches to keep them away from the machine until 2 when the volatility will start to come back into the markets pre FOMC.

For support watch 1185 and 1193 for resistance on the upside. Remember expect the unexpected in relation to QEII details. The biggest moves happen when you least expect them.