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S&P 500 and Dow Jones Futures at Record Highs

by Archer Financial Services | Nov 30, 2017

By Alan Bush | Senior Financial Economist at ADMIS     

STOCK INDEX FUTURES 

S&P 500 and Dow Jones futures advanced as investors focused on positive developments surrounding the U.S. tax bill.

Initial U.S. jobless claims fell 2,000 to 238,000 in the week ended November 25. Economists predicted claims to total 240,000.

Personal income increased .4% in October after rising at the same pace in September. Economists had expected a .3% gain in income.

Personal spending, increased .3% in October from a month earlier, which compares to the estimate of a .2% rise.

The computer models that I use continue to generate bullish signals for stock index futures.

The main trend for stock index futures is higher.

 

CURRENCY FUTURES

The U.S. dollar firmed, moving further away from a two month low that was registered earlier this week. Some traders are establishing long positions on the belief that the Federal Reserve will continue to unwind its record stimulus plan in 2018 as growth prospects improve.

The euro currency is higher in spite of news that the annual rate of inflation in the euro zone rebounded in November, but was below expectations. However, consumer prices were 1.5% higher than a year ago.

The unemployment rate in the euro zone declined to 8.8% in October, which is the lowest in almost nine years. In Germany, the jobless rate remained at a record low of 5.6% and retail sales unexpectedly fell 1.4% from a year earlier.

The British pound responded positively to news that an agreement was reached with the E.U. over the Irish border.

The Japanese yen is lower after a report showed Japan’s industrial output increased .5% in October, which compared to the estimate of a 1.9% gain.

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

 

INTEREST RATE MARKET FUTURES

Futures are lower, especially at the long end of the curve.

Dallas Federal Reserve Bank President Robert Kaplan will speak at 12:00.

According to financial futures markets, the probability that the Federal Open Market Committee will increase its fed funds rate at the December 12-13 meeting is over than 99%.

 

SUPPORT AND RESISTANCE

December 17   S&P 500

Support    2620.00       Resistance    2639.00

 

December 17   U.S. Dollar Index

Support    93.010         Resistance    93.540

 

December 17    Euro Currency

Support    1.18110       Resistance    1.18950

 

December 17    Japanese Yen

Support    .88850         Resistance    .89460

 

December 17    Canadian Dollar

Support    .77430         Resistance    .77860

 

December 17   Australian Dollar

Support    .7545           Resistance    .7609

 

March 18   Thirty Year Treasury Bonds

Support    151^20        Resistance    152^12

 

February 18   Gold

Support    1275.0         Resistance    1291.0

 

March 18   Copper

Support    3.0500         Resistance    3.1000

 

January 18   Crude Oil

Support    57.21           Resistance    58.31

 

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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