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Russell 2000 Futures Hit Record High

by Archer Financial Services | Jun 05, 2018

By Alan Bush | Senior Financial Economist at ADMIS   

STOCK INDEX FUTURES  

Russell 2000 futures advanced to a new historical high in the overnight trade and the NASDAQ is closing in on new record highs.

The 8:45 central time May PMI services index is expected to be 55.7.

There are two 9:00 reports. The May ISM non-manufacturing index is anticipated to be 58 and the April Job Openings and Labor Turnover Survey (JOLTS) is estimated to be 6.543 million.

The Labor Department's JOLTS report tracks the monthly change in job openings and offers rates on hiring and quits.

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 higher and the euro currency is lower on news that services in the euro area slowed more than expected in May.

A purchasing managers’ index of services in the euro zone declined to 53.8, which is slightly under the initial estimate and down from 54.7 in April. 

The British pound is higher on news that services sector activity improved in May, hitting a three month high.

The Canadian dollar and the Australian dollar are lower due to weaker crude oil prices.

The Reserve Bank of Australia left its key interest rate unchanged at a record low 1.5%, after a key unemployment measure edged higher. No change in policy was expected.

The Mexican peso fell for a fourth day to its weakest level in over a year due to concerns that a trade agreement with the U.S. may not be approved by Congress before 2019.

    

INTEREST RATE MARKET FUTURES

The lack of progress in a variety of global trade issues caused some flight to quality buying to come into futures.

The probability of a fed funds rate hike from the Federal Open Market Committee at the June 13 meeting is 91%, which compares to 96% yesterday.

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    2739.00       Resistance    2755.00

 

June 18   U.S. Dollar Index

Support    93.790         Resistance    94.210

 

June 18   Euro Currency

Support    1.16670       Resistance    1.17330

 

June 18   Japanese Yen

Support    .90910         Resistance    .91410

 

June 18   Canadian Dollar

Support    .76840         Resistance    .77550

 

June 18   Australian Dollar

Support    .7601           Resistance    .7666

 

September 18   Thirty Year Treasury Bonds

Support    143^2          Resistance    144^2

 

August 18   Gold

Support    1291.0         Resistance    1303.0

 

July 18   Copper

Support    3.1200         Resistance    3.1800

 

July 18   Crude Oil

Support    64.12           Resistance    65.35



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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