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S&P 500, Dow Jones and NASDAQ Futures at Record Highs

by Archer Financial Services | Oct 05, 2017
By Alan Bush | Senior Financial Economist at ADMIS       

 

STOCK INDEX FUTURES

S&P 500, Dow Jones and NASDAQ futures advanced to new record highs today, as optimism over the outlook for the U.S. economy continues to bolster investors' confidence.

In the week ended September 30, initial jobless claims fell 12,000 to 260,000, which compares to expectations of 265,000.

The 9:00 August factory orders report is expected to show an increase of 1%.

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, but a major resistance area is holding. There was little market reaction to news that the U.S. trade deficit narrowed to an 11 month low in August.

The Canadian dollar is lower  after a report showed  Canada's trade deficit widened in August from the previous month to the fifth largest on record, as exports fell for a third straight month and are now down on a year to year basis. 

The deteriorating trade situation in Canada strengthens expectations that the Bank of Canada will hold off an additional interest rate hikes for the balance of the year after the BoC increased rates in July and September.  

The Canadian dollar and the Australian dollar are lower in spite of higher crude oil prices.

 

INTEREST RATE MARKET FUTURES

Kansas City Federal Reserve Bank President Esther George will speak at the Investing in America's Workforce Capstone Conference in Austin at 3:30.

The Federal Reserve appears to be on track to raise its fed funds rate for a third time this year, and the fifth since late 2015, to a range of 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 83%, which is unchanged from yesterday.

The long term fundamentals for futures are mixed.

 

SUPPORT AND RESISTANCE

 

December 17   S&P 500

Support    2531.00       Resistance    2542.00

 

December 17   U.S. Dollar Index

Support    93.170         Resistance    93.630

 

December 17    Euro Currency

Support    1.17610       Resistance    1.18370

 

December 17    Japanese Yen

Support    .88760         Resistance    .89390

 

December 17    Canadian Dollar

Support    .79660         Resistance    .80380

 

December 17   Australian Dollar

Support    .7789           Resistance    .7873

 

December 17   Thirty Year Treasury Bonds

Support    152^12        Resistance    153^4

 

December 17   Gold

Support    1272.0         Resistance    1286.0

 

December 17   Copper

Support    2.9500         Resistance    3.0350

 

November 17   Crude Oil

Support    49.79           Resistance    50.55


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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