S&P 500 Futures Test Key Downtrend Line
Posted 07-14-2010 at 01:51 PM by fastbrokers
Updated 07-14-2010 at 01:54 PM by fastbrokers (Add Disoclosures)
Updated 07-14-2010 at 01:54 PM by fastbrokers (Add Disoclosures)
The S&P futures are testing their key medium-term downtrend line originating at April highs and connecting through June highs.
If the S&P futures are able to surpass this downtrend line and top 1100 with conviction the futures could signal that they are entering a new uptrend. However, 1100 could prove to be a difficult barrier to leave behind.
Meanwhile, it seems upcoming earnings reports could prove to be the key test for the S&P futures along with tomorrow’s retail sales data. Today’s data wire showed that the U.S. trade deficit widened more than anticipated on the back of strong import demand. Even though it is disconcerting that the U.S. trade balance is declining again, and rise in imports is encouraging as far as tomorrow’s retail sales report is concerned.
Alcoa kicked off earnings season after the bell Monday and beat the street by a penny. Alcoa has disappointed the past couple quarters, so a relatively upbeat report from Alcoa has given hope to investors that this earnings season will pan out well. However, we’ll have to see how it unravels over the coming days.
Looking over to the Forex markets, the EUR/USD and Cable are moving on news that Greece’s debt auction was oversubscribed, a positive for the risk trade. However, the good news comes with a Moody’s downgrade of Portugal’s debt by two notches and disappointing EU economic sentiment data. Furthermore, the SCI ended its winning streak shy of 2500 and the index shed -1.62% today. Hence, today has been a mixed story around the globe, placing more emphasis on upcoming earnings releases and tomorrow’s retail sales figure. Investors should also note that the oil spill in the Gulf could be capped this week, possibly delivering a positive psychological boost to U.S. equities.
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Disclaimer: The above information is provided for information purposes only and under no circumstances should be regarded neither as investment advice or as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. All materials are property of Fast Trading services, LLC and unless otherwise indicated, any unauthorized reproduction is prohibited.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
Jesse Richards is a Series 3 registered Commodities Futures Broker and a Principal of Fast Trading Services LLC (FastBrokers Home Page - FastBrokers | Futures | Forex | Commodities | Online Trading).
If the S&P futures are able to surpass this downtrend line and top 1100 with conviction the futures could signal that they are entering a new uptrend. However, 1100 could prove to be a difficult barrier to leave behind.
Meanwhile, it seems upcoming earnings reports could prove to be the key test for the S&P futures along with tomorrow’s retail sales data. Today’s data wire showed that the U.S. trade deficit widened more than anticipated on the back of strong import demand. Even though it is disconcerting that the U.S. trade balance is declining again, and rise in imports is encouraging as far as tomorrow’s retail sales report is concerned.
Alcoa kicked off earnings season after the bell Monday and beat the street by a penny. Alcoa has disappointed the past couple quarters, so a relatively upbeat report from Alcoa has given hope to investors that this earnings season will pan out well. However, we’ll have to see how it unravels over the coming days.
Looking over to the Forex markets, the EUR/USD and Cable are moving on news that Greece’s debt auction was oversubscribed, a positive for the risk trade. However, the good news comes with a Moody’s downgrade of Portugal’s debt by two notches and disappointing EU economic sentiment data. Furthermore, the SCI ended its winning streak shy of 2500 and the index shed -1.62% today. Hence, today has been a mixed story around the globe, placing more emphasis on upcoming earnings releases and tomorrow’s retail sales figure. Investors should also note that the oil spill in the Gulf could be capped this week, possibly delivering a positive psychological boost to U.S. equities.
July13S&P.png
Disclaimer: The above information is provided for information purposes only and under no circumstances should be regarded neither as investment advice or as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. All materials are property of Fast Trading services, LLC and unless otherwise indicated, any unauthorized reproduction is prohibited.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
Jesse Richards is a Series 3 registered Commodities Futures Broker and a Principal of Fast Trading Services LLC (FastBrokers Home Page - FastBrokers | Futures | Forex | Commodities | Online Trading).
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