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Futures roll day

Today’s action was all about rolling futures contracts, where traders are exiting positions on December contracts and entering positions on the March contract, or are simply trading spread plays (the difference in price between the Dec and Mar contracts).

Usually, during roll events, we are trendless, but have a fairly wide range which exactly describes trade today, with a strong move up mid day reversed fully to close as an inside day (not breaking previous session highs or lows).

With FOMC announcement regarding rates due out next week, we expect range bound trade to continue with no new trend being established until later next week.