This morning, the S&P 500 Index e-mini futures (ES U1) are trading sharply higher by 12.00 points to 1217.00 per contract. Traders continue to be in jubilee mode as the European Union markets are also trading higher this morning. This is the last trading session in the month of August and often the end of the month will see some short term buying. This is also the final trading week before the Labor Day holiday in the United States, therefore, the volume will usually be much lighter than normal. Many traders and investors will often take a vacation around this time of the year. It is important to note that the major stock indexes have surged higher over the past week, profit taking is always possible ahead of the important August non-farm payroll report on Friday. This morning, the ADP report announced that 91,000 new private sector jobs were added in the month of August.
This rally on light volume is making me quite uncomfortable.