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8/23/2017

  • 8/23/2017

    WORLD STOCK MARKETS

    World stock markets were mostly weaker Wednesday. U.S. stock indexes are also pointed toward lower openings when the New York day session begins. World stock markets are having a tough month of August, heading into the historically even tougher months of September and October.

    Gold prices are slightly higher in pre-U.S.-session trading. Gold prices are in a near-term uptrend, but struggle when prices approach the key resistance level of $1,300.00.

    In overnight news, the Euro zone Markit composite purchasing managers (PMI) index came in at 55.8 in August from 55.7 in July. The August number beat market expectations. A reading above 50.0 suggests growth in the sector.

    The marketplace is awaiting the annual central bankers meeting held in Jackson Hole, Wyoming, Thursday through Saturday. Featured speakers from around the world include Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi. Traders and investors will closely examine the Jackson Hole speeches for clues on future monetary policy moves by the world’s major central banks. In recent years the Jackson Hole central bankers confab has significantly moved the markets.

    The key “outside markets” early Wednesday see the U.S. dollar index slightly lower. The greenback has been trading choppy and sideways at lower levels during the month of August. Meantime, Nymex crude oil futures are also slightly lower. Trading in oil has also been choppy recently.

    U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the U.S. flash services PMI, the flash manufacturing PMI, new residential sales and the weekly DOE liquid energy stocks report.

    U.S. STOCK INDEXES

    S&P 500 September e-mini futures: Prices are weaker in early U.S. trading. There are early chart clues that a near-term market top is in place. The shorter-term moving averages (4-, 9- and 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at the overnight high of 2,454.75 and then at 2,465.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at Tuesday’s low of 2,427.50 and then at this week’s low of 2,415.75. Sell stops are likely located just below those levels.

    Nasdaq index September futures: Prices are weaker in early U.S. trading today. There are still early chart clues that signal that a market top is in place. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the overnight high of 5,884.00 and then at 5,900.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at 5,825.00 and then at 5,800.00. Sell stops are likely located just below those levels.

    U.S. TREASURY BONDS AND NOTES

    September U.S. T-Bonds: Prices are slightly higher in early U.S. trading. Bulls have the firm overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at 156 even and then at last week’s high of 156 12/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 155 16/32 and then at 155 even. Sell stops likely reside just below those levels.

    September U.S. T-Notes: Prices are steady in early U.S. trading. Bulls have the solid overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at the overnight high of 126.20.5 and then at 126.28.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 126.16.0 and then at 126.10.0. Sell stops likely reside just below those levels.

    U.S. DOLLAR INDEX

    The September U.S. dollar index is slightly lower in early U.S. trading. Bears have the overall near-term technical advantage. However trading has been choppy during August. The shorter-term moving averages for the dollar index are neutral early today as the 4-day is even with the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators for the dollar index are bearish early today. The dollar index finds shorter-term technical resistance at the overnight high of 93.555 and then at last week’s high of 94.055. Shorter-term support is seen at this week’s low of 92.920 and then at 92.830.

    NYMEX CRUDE OIL

    October Nymex crude oil prices are slightly lower. Bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Look for buy stops to reside just above technical resistance at Tuesday’s high of $48.21 and then at this week’s high of $48.91. Look for sell stops just below technical support at this week’s low of $47.21 and then at $47.00.

    GRAINS

    Grain futures markets were steady to firmer overnight. Grain market bears remain in solid overall near-term technical control. The focus this week is on the annual Pro Farmer crop tour of the Corn Belt. Traders are looking ahead to the U.S. harvest of corn and soybeans, which is just a few weeks away.

    * 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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