header_img

Dow Jones and NASDAQ Futures at Record Highs

by Archer Financial Services | Oct 09, 2017
By Alan Bush | Senior Financial Economist at ADMIS       

 

STOCK INDEX FUTURES

Dow Jones and NASDAQ futures advanced to new record highs today, as stock index futures continue to be supported by optimism about global economic growth.

In addition, global equity markets advanced as investors brushed off geopolitical tensions over the weekend. Gains in stock index futures came in spite of reports that North Korean leader Kim Jong Un had defended his nuclear weapons program in a weekend speech.   

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 early 1920s.

The main trend for stock index futures is higher.

 

CURRENCY FUTURES

The U.S. dollar is a little lower and the euro currency is higher on news that industrial output in Germany grew more than expected.  Industrial output increased by 2.6% in August from July, when economists predicted growth of .9%.

Industrial output has been on a strong upward trend since the beginning of 2017.

Markets in Japan are closed for a holiday.

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

 

INTEREST RATE MARKET FUTURES

Over the weekend Rosengren of the Federal Reserve said U.S. wages are rising gradually, but are below expectations. In addition, Rosengren said he expects the jobless rate to continue to move lower.  

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 93%, which is unchanged from Friday.

The long term fundamentals for futures are mixed.

 

SUPPORT AND RESISTANCE

 

December 17   S&P 500

Support    2541.00       Resistance    2553.00

 

December 17   U.S. Dollar Index

Support    93.330         Resistance    93.770

 

December 17    Euro Currency

Support    1.17540       Resistance    1.18110

 

December 17    Japanese Yen

Support    .88850         Resistance    .89400

 

December 17    Canadian Dollar

Support    .79570         Resistance    .80030

 

December 17   Australian Dollar

Support    .7731           Resistance    .7783

 

December 17   Thirty Year Treasury Bonds

Support    151^20        Resistance    152^12

 

December 17   Gold

Support    1274.0         Resistance    1291.0

 

December 17   Copper

Support    3.0100         Resistance    3.0400

 

November 17   Crude Oil

Support    49.07           Resistance    50.03

 

 

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

Would you like to open an account with us? Go to our interactive New Account application at Open an Account. It is fast, saves on postage and it’s green.

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.

Offers