Trader's Daily Notebook: Bears Put Up Their Dukes

Bears came out swinging Thursday morning and put on an impressive display of short-selling power. For the day, the E-Mini S&P 500 futures (Es) traded a bump over 2 million contracts over a 27.25-handle range. For those keeping track, Thursday's session marked only the fourth this year where 2 million or more contracts have traded. It may also be worth noting that the prior three times were also wide-ranging selloff days.

Daily S&P 500 Futures Volume Profile
View Chart »  View in New Window »  

It's not difficult to spot Thursday's decline on the chart above. But what isn't readily obvious, primarily because I didn't include Bollinger Bands (BB), is that the Es closed beneath its lower BB line for the first time since July 6. Given how many traders like to see how similar situations played out in the past, I believe it's worth noting that each time the Es has closed beneath its lower BB line this year, the following session, on a closing basis, was either positive or relatively flat....523 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.