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Russell 2000 Stock Index Futures at Record Highs

by Archer Financial Services | Jun 04, 2018

By Alan Bush | Senior Financial Economist at ADMIS   

STOCK INDEX FUTURES  

Stock index futures continued to advance following gains made on Friday when the U.S. employment numbers came in substantially stronger than expected.

Russell 2000 futures advanced to a new historical high.

Prices are higher in spite of news that the U.S. and China ended their latest trade talks without a settlement.

The 9:00 central time April factory orders report is anticipated to be down .4%.

Traders appear to be gradually shift their focus of attention more toward the still bullish overall accommodative global interest rate policies and away from the geopolitical worries.

 

CURRENCY FUTURES

The U.S. dollar is lower as concerns over global trade grew, after a round of U.S.-China trade talks broke down over the weekend without an agreement.

The euro currency is higher as the political tensions in Italy eased.

The populist coalition of the 5 Star Movement and the League, which was sworn in on Friday, is expected to win a vote of confidence in both houses of parliament later this week. 

The euro is higher in spite of news that the European Union's statistics agency said producer prices were unchanged in April from March, when economists estimated a .5% increase on the month.  

The British pound is higher due to better than expected construction data.

The Canadian dollar and the Australian dollar were supported by higher crude oil prices.

Some of the grains in the Australian dollar were linked to news that retail sales in Australia rose by .4% in April from a month earlier, which was better than the .2% gain that was expected by economists. 

     

INTEREST RATE MARKET FUTURES

Flight to quality longs continued to be liquidated with futures a little lower today. Some of   the selling was due to a better tone to the political situation in Italy.

The probability of a fed funds rate hike from the Federal Open Market Committee at the June 13 meeting is 96%, which compares to 94% on Friday.

Although geopolitical events will inevitably develop from time to time, which will produce short periods of flight to quality buying, the main trend for futures is lower.

 

SUPPORT AND RESISTANCE

June 18   S&P 500

Support    2727.00       Resistance    2751.00

 

June 18   U.S. Dollar Index

Support    93.530         Resistance    94.210

 

June 18   Euro Currency

Support    1.16670       Resistance    1.17660

 

June 18   Japanese Yen

Support    .91140         Resistance    .91580

 

June 18   Canadian Dollar

Support    .77080         Resistance    .77630

 

June 18   Australian Dollar

Support    .7558           Resistance    .7678

 

September 18   Thirty Year Treasury Bonds

Support    143^8          Resistance    144^2

 

August 18   Gold

Support    1291.0         Resistance    1307.0

 

July 18   Copper

Support    3.0800         Resistance    3.1500

 

July 18   Crude Oil

Support    65.11           Resistance    66.29



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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