Unusually Biased
Stock index futures are showing an unusual bias today.
Any one signal on the
Market
Bias Indicators Page can provide an edge. Three signals from the page
pointing the same way indicates a particularly strong collective bias. Today we
have a rare six market bias indicator signals pointing up, giving a
stronger-than-normal suggestion that stock index futures could move
higher.Â
We’ve been in a six handle range in the S&Ps since 11
AM Friday, setting up the likelihood of an explosive move.Â
September dollar index futures
(
DXU1 |
Quote |
Chart |
News |
PowerRating) are rallying out of their Pullback From
Highs setup. Inflation in the dozen-nation Euro-bloc rose at its fastest
pace in two years, limiting the maneuvering room of the European Central Bank to
aggressively cut rates. And Japan’s central bank, the Bank of Japan, fired a shot
across the yen’s figurative bow by saying that it expects the second quarter’s
economic performance to be worse than Q1 of 2001, signaling Japan’s most
cognizant financial institution believes the economy will lapse into its fourth
recession (two consecutive quarters of negative growth) in 11 years. This
creates a negative bias in both of the currencies most heavily weighted on the
dollar index, giving the DX an upside bias.
Cotton
(
CTN1 |
Quote |
Chart |
News |
PowerRating)Â is trading right
at its Turtle Soup Plus One Buy
trigger.Â
Federal funds futures
(
FFN1 |
Quote |
Chart |
News |
PowerRating) are pricing in as high as a 50% chance of a
50-basis point rate cut for the Fed’s FOMC meeting next week. This means a
25-basis point cut rate is more than fully priced in.