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Stock Index Futures at Record Highs

by Archer Financial Services | Oct 03, 2017
By Alan Bush | Senior Financial Economist at ADMIS        
    

STOCK INDEX FUTURES 

S&P 500, Dow Jones and Russell 2000 futures advanced to new historical highs.

There are no major economic reports scheduled for today.

Bullish signals continue to be generated from the computer models that I use that have been back- tested to the 1920s.

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 a little lower and continues to be held back by the pro-independence protest in Catalonia.

The British pound is lower despite some talk that the Bank of England could increase its key lending rate as soon as in November, although many analysts believe the first quarter of 2018 is more likely.   

The Bank of England lowered its benchmark interest rate to a new low of 25 basis points in August 2016 as part of a package of stimulus measures aimed at supporting the U.K. economy from any fallout after voters decided to withdraw from the European Union in a referendum two months earlier. 

The Canadian dollar and the Australian dollar are lower due to weaker crude oil prices.

The Australian dollar fell to its lowest level in over two months after the Reserve Bank of Australia left interest rates unchanged and gave a cautious assessment of the Australian economy. The RBA left its cash rate target unchanged at a record low 1.5% where it has been since August 2016.     

The Australian dollar is lower in spite of a report that showed the number of Australian home building permits increased by .4% in August from July.  

 

INTEREST RATE MARKET FUTURES

The Federal Reserve is still on track to raise its fed funds rate for a third time this year, and the fifth since late 2015, to a range between 1.25% and 1.50%.

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 yesterday.

The long term fundamentals for futures are mixed.

 

SUPPORT AND RESISTANCE

 

December 17   S&P 500

Support    2521.00       Resistance    2532.00

 

December 17   U.S. Dollar Index

Support    93.230         Resistance    93.830

 

December 17    Euro Currency

Support    1.17320       Resistance    1.18210

 

December 17    Japanese Yen

Support    .88650         Resistance    .89160

 

December 17    Canadian Dollar

Support    .79730         Resistance    .80180

 

December 17   Australian Dollar

Support    .7771           Resistance    .7837

 

December 17   Thirty Year Treasury Bonds

Support    152^0          Resistance    152^28

 

December 17   Gold

Support    1270.0         Resistance    1279.0

 

December 17   Copper

Support    2.9250         Resistance    2.9800

 

November 17   Crude Oil

Support    50.03           Resistance    50.96

 

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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