Tech Futures Tank, But Emerge
Wall Street and La Salle Street showed their impatience
with poor corporate results Wednesday, punishing firms that failed to meet
earnings expectations and resulting in a broad sell off in stock index futures.
Nasdaq 100 futures
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plunging after LSI Logic
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quarterly profit forecasts. The sharp decline on the opening triggered downside
momentum that carried through to the middle of its recent June-July
consolidation range at the 3800 level. The NDU0 also provided nearly-textbook
intraday shorting opportunities on two occasions down to support, but recovered,
erasing losses to close downn 23.00 at 3865.00. The Nasdaq 100 registered on the
New 10-Day Low List,
an indicator that often provides a tip-off to downside momentum. September S&P futures
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fell 15.50 to 1469.00 and Dow futures
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Â
Interest rate futures remained in a narrow range near highs, perhaps tipping the
hand of what Thursday’s economic data is likely to show. T-bond futures could
rally and test their highs of the year if Thursday’s employment cost index (ECI)
comes in lower than expected and if durable goods orders slow. The higher lows
and flag patterns in T-bond futures
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a rally, which could begin to materialize Wednesday as traders seek to front-run
potentially friendly numbers. T-bond futures
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14/32 after registering on the Momentum-5
List. Following are the forecasts for Thursday’s economic data. Durable
goods consensus: 0.5%. Employment cost index consensus: 1.0%. Â
In currencies, the yen held at contract lows as more
unfavorable economic news continued to plague the currency. Tuesday the yen fell
after a ruling Liberal Democratic Party official resigned on corruption charges.
The bankruptcy of retail giant Sago continues to be a negative and was
exacerbated by a poor retail sales number Thursday. Uncertainty is also
surrounding the yen following rumors that a Bank of Japan governor could resign.
The September yen
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the Implosion-5 List.Â
Going the other way, the Canadian dollar
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from the Momentum-5
List, extended a nearly two-week rally to close near a one-month high.
The futures has now completed the right side of a cup and has completed a
measured move from a cup-with-handle bottom. CDU0 closed .0007 higher at .6834.
In other markets, sugar, from the Momentum-5
List, remains on a tear, and closed up .17 at 10.60.