Stock Index Futures at New Highs

by Archer Financial Services | Jan 04, 2018

By Alan Bush | Senior Financial Economist at ADMIS     


S&P 500, Dow and NASDAQ futures advanced to new historical highs in the overnight trade as signs of quickening economic activity around the globe encouraged risk-on sentiment among investors.

The Automatic Data Processing employment change report showed employers added 250,000 jobs, which is the biggest monthly increase since March. The median estimate called for 188,000.   

Initial jobless claims increased by 3,000 to a seasonally adjusted 250,000 in the week ended December 30.  Economists expected 240,000 new claims.

The 8:45 central time December services PMI is expected to be 52.4.

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

The main trend for stock index futures is higher. 



The U.S dollar is lower even though yesterday’s release of the minutes of the December 12 -13 policy meeting were considered to be a little hawkish on balance.

Euro currency futures advanced to their highest level since December 2014 after a report showed euro area activity accelerated at its fastest rate since early 2011.

A composite purchasing managers’ index for manufacturing and services advanced to 58.1 in December from 57.5 a month earlier, beating analyst’s expectations.

The British pound is higher in spite of news that U.K. consumer credit growth was below expectations in November 2017.

The Canadian dollar is higher on news that Canadian producer prices increased in November at their fastest pace in nearly three years, coming in up 1.4% in November following a 1.1% increase in the previous month.



Futures are lower across the board today after the Federal Open Market Committee yesterday released the minutes of its December policy meeting.

The FOMC said it could speed up rate hikes because of President Trump's tax cuts.

St. Louis Federal Reserve Bank President James Bullard will speak at 12:30.

The probability of a fed funds rate hike at the FOMC’s March 21 policy meeting is 73%, which compares to 57% yesterday.

Futures are likely to work lower in the longer term, especially at the long end of the curve, as growth in the global economy accelerates.




March 18   S&P 500

Support    2706.00       Resistance    2724.00


March 18   U.S. Dollar Index

Support    91.420         Resistance    92.030


March 18   Euro Currency

Support    1.20530       Resistance    1.21350


March 18   Japanese Yen

Support    .88860         Resistance    .89270


March 18   Canadian Dollar

Support    .79670         Resistance    .80110


March 18   Australian Dollar

Support    .7804           Resistance    .7876


March 18   Thirty Year Treasury Bonds

Support    151^16        Resistance    152^10


February 18   Gold

Support    1305.0         Resistance    1323.0


March 18   Copper

Support    3.2450         Resistance    3.3000


February 18   Crude Oil

Support    61.41           Resistance    62.31


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.