September 13, 2017
STOCK INDEX FUTURES
S&P 500 futures registered a new record high yesterday and also today, and Dow futures hit a historic high yesterday.
There was little market reaction to news that the producer price index rose .2% in August following a drop of .1% in July. Economists were expecting an increase of .3%.
The core inflation rate, which strips out volatile food and energy prices increased .1% in August, after declining .1% in July. Analysts predicted an increase of .2%.
Geopolitical issues will only temporarily get in the way of this bull market.
The computer models that I use, which have been backed tested to the early 1920’s, continue to generate bullish signals for stock index futures.
The main trend for stock index futures is higher.
The U.S. dollar came under pressure as the probability of a fed funds rate hike this year lessened.
The main trend for the greenback is lower.
The euro currency is higher in spite of news that euro zone industrial growth slowed, increasing by only .1% between June and July.
The British pound advanced to a one year high against the U.S. dollar in the overnight trade. However, the pound is lower now after a report showed wages in the U.K. are still lagging inflation.
Bank of England officials are expected to keep their benchmark interest rate steady at 25 basis points when they announce this month's policy decision tomorrow.
The Canadian dollar and the Australian dollar are higher due to firming crude oil prices.
INTEREST RATE MARKET FUTURES
The Treasury will auction 30 year bonds today.
Federal Reserve speakers are now in a blackout period before next week's policy meeting on September 20.
At 1:00 central time the Treasury will release its August budget report. The consensus view is for a $115.0 billion deficit.
According to financial futures markets, the probability that the Federal Open Market Committee will increase its fed funds rate at the December 13 meeting is 42%, which compares to 47% yesterday.
The long term fundamentals for futures are mixed.
Stand aside for now.
SUPPORT AND RESISTANCE
December 17 S&P 500
Support 2484.00 Resistance 2497.00
December 17 U.S. Dollar Index
Support 91.300 Resistance 91.770
December 17 Euro Currency
Support 1.20050 Resistance 1.20640
December 17 Japanese Yen
Support .91000 Resistance .91480
December 17 Canadian Dollar
Support .82030 Resistance .82600
December 17 Australian Dollar
Support .7996 Resistance .8048
December 17 Thirty Year Treasury Bonds
Support 154^28 Resistance 155^20
December 17 Gold
Support 1331.0Resistance 1344.0
December 17 Copper
Support 2.9700 Resistance 3.0500
October 17 Crude Oil
Support 47.53 Resistance 48.98
For more information about these markets, please contact Alan at 312.242.7911 or via email at firstname.lastname@example.org. Thank you.
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Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading futures and options can be substantial. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff. Research analyst does not currently maintain positions in the commodities specified within this report. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.