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S&P 500 and Dow at Record Highs

by Archer Financial Services | Oct 02, 2017
By Alan Bush | Senior Financial Economist at ADMIS       
 

STOCK INDEX FUTURES

S&P 500 and Dow Jones futures advanced to new historical highs today. 

The 8:45 central time September manufacturing PMI is expected to be 53.

The 9:00 September Institute for Supply Management manufacturing index is anticipated to be 58 and the 9:00 August construction spending report is estimated to be up .3%.

The computer models that I use, which have been back tested to the early 1920s, continue to generate bullish signals for stock index futures.

The main trend for stock index futures is higher.

 

CURRENCY FUTURES

The U.S. dollar is higher due to recently increased expectations of a fed funds rate hike in December. In addition, the greenback is being supported by prospects of significant tax cuts in the U.S.

The U.S. dollar is in a major resistance area.

The euro currency is lower due to political unrest in Spain. The euro is under pressure in spite of signs of upbeat factory growth in the euro zone.

The final manufacturing PMI for the euro zone increased to 58.1 in September, which is the highest level since February 2011.

The British pound is lower despite news that a survey of the U.K.'s manufacturing sector was lower, but was better than expected.  

The Japanese yen is lower in spite of news that Japan’s business confidence came in at a 10 year high, according to the Bank of Japan's quarterly tankan survey.

 

INTEREST RATE MARKET FUTURES

Dallas Federal Reserve Bank President Robert Kaplan will speak at 1:00.

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 78%, which is unchanged from Friday.

The long term fundamentals for futures are mixed.

 

SUPPORT AND RESISTANCE

 

December 17   S&P 500

Support    2513.00       Resistance    2525.00

 

December 17   U.S. Dollar Index

Support    92.840         Resistance    93.550

 

December 17    Euro Currency

Support    1.17710       Resistance    1.18710

 

December 17    Japanese Yen

Support    .88650         Resistance    .89260

 

December 17    Canadian Dollar

Support    .79810         Resistance    .80350

 

December 17   Australian Dollar

Support    .7781           Resistance    .7851

 

December 17   Thirty Year Treasury Bonds

Support    152^0          Resistance    153^4

 

December 17   Gold

Support    1271.0         Resistance    1286.0

 

December 17   Copper

Support    2.9400         Resistance    2.9950

 

November 17   Crude Oil

Support    50.03           Resistance    51.88

 

For more information about these markets, please contact Alan at 312.242.7911 or via email at alan.bush@admis.com. 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.

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