We are getting closer to the Federal Open Market Committee (FOMC) on Wednesday and movements are more and more volatile. Yesterday, for example, we went from the heave red color into the green at the end of the session. On many instruments, that created a hammer candle, which is a very bullish sign. The same has happened on the CME as well but here, even the situation before that, was not so bad. The CME was doing really well in the past couple of days, much better than the rest of the market.
One of the reasons is of course volatility. When volatility increases, the vast majority of the stock exchanges operators, brokers etc., make money. The price of the CME stock was pretty stable, close to all-time highs and without a breakout of any major supports. In fact, the price bounced from a crucial support yesterday. This support is an area below 220 USD (green), which in May and June 2021 was a strong resistance. This area proved to be efficient throughout November, December and January, so it was no surprise that it held as well yesterday.
The CME is one of very few assets, where the sentiment is positive right now. Of course, as long as the price stays above the 220 USD mark. The price closing below, will be a signal to abandon this ship, but chances for that are now limited.