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Double Top Pattern in June S&P 500 Futures

by Archer Financial Services | May 20, 2020

By Alan Bush | Senior Financial Economist at ADMIS   
 

STOCK INDEX FUTURES

U.S. stock index futures are higher, helped by strong corporate earnings. 

In the June S&P 500 futures there is a top double top at the 2965.00 – 2976.25 area.

The technical picture continues to improve for stock index futures.

CURRENCY FUTURES

The U.S. dollar is lower for a fourth day on the belief that the Federal Reserve could do more to stimulate the U.S. economy. 

The euro zone April consumer price index was up 0.3% on the month, as expected and up 0.3% on the year when an increase of 0.4% on the year was anticipated.
 
The U.K. inflation rate sank in April to its lowest level since August 2016, falling to 0.8% from 1.5% a year earlier.  This now means that the inflation figure is outside the Bank of England's mandate and increases the prospects for more Bank of England stimulus next month.

The Japanese yen is higher after a report showed Japan's March core machinery orders fell 0.4% on the month when a decline of 7.0% was predicted.

The Australian dollar is higher even though a report showed preliminary Australian retail sales fell 17.9% on the month in April, dropping sharply from growth of 8.5% in March. 

INTEREST RATE MARKET FUTURES 

In testimony to Congress yesterday Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin said U.S. officials are aiming to have lending programs planned for smaller businesses and municipalities up and running by the end of the month. 

Federal Reserve speakers today are Raphael Bostic at 9:00 and James Bullard at 11:00.

The Treasury will auction 20-year bonds. 

At 1:00 the Federal Reserve will release the minutes from its April 28 and 29 Federal Open Market Committee meeting when officials promised to use a full range of tools to support the U.S. economy. The Fed issues minutes of its previous meetings with a lag of three weeks after the meeting.

The thirty-year Treasury bond futures are in a broadly based congestion pattern, as the main fundamental influences are offsetting. 

SUPPORT & RESISTANCE

June 20 S&P 500
Support    2905.00    Resistance    2970.00 
June 20 U.S. Dollar Index
Support    99.110       Resistance    99.650
June 20 Euro Currency
Support    1.09150     Resistance    1.09880 
June 20 Japanese Yen
Support    .92550        Resistance    .93120
June 20 Canadian Dollar
Support    .71540        Resistance    .72150 
June 20 Australian Dollar
Support    .6520           Resistance    .6596
June 20 Thirty Year Treasury Bonds
Support    178^12       Resistance     179^16
June 20 Gold
Support    1740.0         Resistance    1765.0 
July 20 Copper
Support    2.4000         Resistance    2.4400 
July 20 Crude Oil
Support   31.42             Resistance    33.21

 



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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