Three Keys Suggested Equity Futures Weakness
Three down signals from the
Market
Bias Indicators Page hinted that stock index futures could sell off. Today
we had a Connors VIX Reversal II, A Connors VIX Reversal VI and a TRIN Thrust
signal all pointing down. Three or more of these signals pointing down is a critical mass, giving a strong, strong collective clue that stock index futures would reverse and sell
off.Â
A bullish USDA report is helping
June lean hogs
(
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PowerRating) come off oversold conditions. What was
viewed as a potential negative is now being viewed as a positive: the removal of
the ban on imports of European Community pork is seen as a positive for general
meat consumption. The view prior to this is that the reestablishment of the
European pork supply would drive prices lower. August pork bellies
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PowerRating)
are also up their daily limit.Â
Inflation figures out of Italy are a negative for
euro FX futures
(
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PowerRating), down .00360. Higher inflation is seen as
hemming in the European Central Bank in its maneuvering room to continue cutting
interest rates. Swiss francs
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PowerRating) are also lower. Both euro FX
futures and Swiss francs are on the
Implosion-5 List.
June dollar index futures
(
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PowerRating) are the primary and remain trading
near contract highs.Â
A stronger dollar is a negative for agriculture futures.
From the Implosion-5 List,
corn and cotton are both trading at contract lows.