By Alan Bush | Senior Financial Economist at ADMIS
U.S. stock index futures are higher despite rising tensions between Washington and Beijing.
On the June S&P 500 futures charts there is a double top on the weekly chart and a triple top on the daily chart.
There are no major economic reports scheduled for today.
Overall, stock index futures continue to perform well for the news in recent weeks.
The euro currency is higher after Germany's central bank published a positive report on the impact of the European Central Bank’s bond-buying program. This report came out two weeks after a German court demanded additional information about the program's economic justification.
The British pound is lower after a report showed retail sales in the U.K. fell by a record 18.1% in April. The volume of retail sales declined 22.6% year-over-year from April 2019.
Consumer confidence in the U.K. fell to the lowest level in a decade in May compared with the end of April.
The Bank of Japan announced no change in its policies. However, officials did announce the creation of a new special program amounting to approximately 75 trillion yen to support corporate financing.
In light of increased U.S.-China tensions flight to quality buying is coming into the market.
The Federal Reserve’s balance sheet increased to $7.09 trillion for the week ending in May 20, which is up from $6.98 trillion in the previous week.
In keeping with the global trend of central banks becoming more accommodative, the Reserve Bank of India cut its key lending rate in an unscheduled move to support the economy. The RBI's monetary policy committee reduced its repurchase agreement rate by 40 basis points to 4.00% from 4.40%.
The next Federal Open Market Committee meeting is scheduled for June 9-10. Currently there is a 98.6% probability that the FOMC will leave its fed funds rate unchanged at zero to 25 basis points.
The thirty-year Treasury bond futures are in a broadly based congestion pattern, as the main fundamental influences are offsetting.
June 20 S&P 500
Support 2901.00 Resistance 2958.00
June 20 U.S. Dollar Index
Support 99.320 Resistance 99.940
June 20 Euro Currency
Support 1.08830 Resistance 1.09650
June 20 Japanese Yen
Support .92740 Resistance .93280
June 20 Canadian Dollar
Support .71150 Resistance .71800
June 20 Australian Dollar
Support .6543 Resistance .6605
June 20 Thirty Year Treasury Bonds
Support 179^4 Resistance 181^10
June 20 Gold
Support 1730.0 Resistance 1755.0
July 20 Copper
Support 2.3700 Resistance 2.4400
July 20 Crude Oil
Support 30.55 Resistance 34.13
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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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This is not a solicitation of any order to buy or sell, but merely a collection of information related to Archer Financial services and commodities trading provided by Archer Financial services. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor do they purport to be complete. No responsibility is assumed with respect to any such element, nor with respect to any expression of opinion herein contained.
The risk of loss in trading futures and options on futures can be substantial. Each investor must carefully consider whether this type of investment is appropriate for them. Past performance is not necessarily indicative of future results.