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5/24/2017

  • 5/24/2017

    Wednesday, May 24 2017

    OVERNIGHT DEVELOPMENTS

    World stock markets were narrowly mixed in overnight trading. U.S. stock indexes are pointed toward near-steady openings when the New York day session begins.

    Gold prices are modestly weaker again in pre-U.S. trading Wednesday, amid a lack of fresh, bullish fundamental news to support the safe-haven metal.

    In overnight news, Moody’s credit rating service has lower edits sovereign credit rating for China for the first time in about 30 years, citing China’s rising debt and slowing rate of economic growth. China’s stock market saw selling pressure on the Moody’s news. Other markets worldwide did not show significant reactions to the surprise move by Moody’s.

    In focus Wednesday is the Federal Reserve’s FOMC minutes from the early-May meeting, which will be released early in the afternoon. Traders and investors will closely examine the minutes for clues on the timing of the next monetary policy move by the U.S. central bank. More slight interest rate increases are expected from the Fed this year. The Fed made its last interest rate increase in March.

    The key outside markets on Wednesday morning find the U.S.dollar index near steady. The greenback bulls are trying to stabilize the index after it hit a six-month low Monday. The dollar index bears remain in firm near-term technical control. Meantime, Nymex crude oil futures prices are also near steady. Crude oil prices have trended solidly higher recently, to suggest sideways, or sideways-to-higher, price action in the near term. Thursday’s OPEC meeting is expected to see the cartel continue its lower production quotas that were implemented last fall.

    Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the quarterly house price index, existing home sales, and the weekly DOE liquid energy stocks report.

    –Go Futures

    U.S. STOCK INDEXES

    S&P 500 June e-mini futures: Prices are near steady in early U.S. trading. The bulls have shown good power since last week’s sell-off and prices are right back near the recent contract high. Bulls have the solid near-term technical advantage. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Today,shorter-term technical resistance comes in at the contract high of 2,404.50 and then at 2,420.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at this week’s low of 2,378.25 and then at 2,365.00. Sell stops are likely located just below those levels.

    Nasdaq index June futures: Prices are slightly higher in early U.S. trading and near the contract and record high scored last week. Bulls have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day average is above the 18-day.Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at the contract high of 5,727.25 and then at 5,750.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at Tuesday’s low of 5,688.50 and then at this week’s low of 5,648.75. Sell stops are likely located just below those levels.

    U.S. TREASURY BONDS AND NOTES

    June U.S. T-Bonds: Prices are slightly higher in early U.S.trading. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at the overnight high of 153 17/32 and then at 154 even. Buy stops likely reside just above those levels.Shorter-term support lies at this week’s low of 153 5/32 and then at 153 even. Sell stops likely reside just below those levels.June U.S. T-Notes: Prices are slightly higher in early U.S.trading. Shorter-term moving averages (4- 9- 18-day) are still bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term resistance lies at 126.00.0 and then at 126.08.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at this week’s low of 125.26.0 and then at 125.20.0. Sell stops likely reside just below those levels.

    U.S. DOLLAR INDEX

    The June U.S. dollar index is slightly higher in early U.S.trading. Bears still have the firm overall near-term technical advantage. The shorter-term moving averages for the dollar index are bearish early today as the 4-day is below the 9-day and 18-day. The 9-day is below with the 18-day moving average. Short-term oscillators for the dollar index are neutral early today. The dollar index finds shorter-term technical resistance at the overnight high of 97.370 and then at 97.740. Shorter-term support is seen at this week’s low of 96.700 and then at 96.500.

    NYMEX CRUDE OIL

    July Nymex crude oil prices are slightly higher and hit af ive-week high overnight. Bulls have technical momentum.Look for buy stops to reside just above technical resistance at the overnight high of $51.88 and then at $52.50. Look for sell stops just below technical support at $51.00 and then at this week’s low of $50.57.

    GRAINS

    Grain futures markets were narrowly mixed overnight. Trading remains choppy in corn. Soybeans and wheat are firmly bearish. Weather in the U.S. Corn Belt remains mostly non-threatening, which is bearish. It’s going to take a weather scare in the U.S. Corn Belt to jump start any significant rallies in the grains in the coming weeks.

    * Disclaimer: there is a substantial risk of loss in futures and options trading.

    ** This newsletter was created by a 3rd party and Go Futures does not endorse, approve, certify, or control these contributions and does not guarantee the accuracy, completeness, efficacy, or timeliness of information located within. Use of any information obtained from such sites is voluntary, and reliance on it should only be undertaken after an independent review by qualified experts. Reference therein to any specific commercial product, process or service does not constitute or imply endorsement.

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