Pullback Or Rollover?
The expected FOMC rate cut was giving the markets the
lift it needed when news of Merck’s earnings bombshell hit the tape and
knocked the legs out from under the ongoing rally in the stock index futures.
The hit drove the Dow futures
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close near its intraday low. Nasdaq 100 futures
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close positive, but were pulled down as well and tailed off after the news.
S&P futures
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index futures are now trading in three-day pullbacks from their recent highs.
Treasuries were boosted again Tuesday as the Merck news triggered an exodus out
of the stock index futures, with both T-bonds
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notes
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However,
both closed in weak fashion and have drawn out bearish tails on Tuesday’s bar.
Cocoa
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38.2% retracement to gain 69 points to close at 1290, while coffee
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double bottom. Sugar
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average for the first time since the middle of October, making its uptrend now
suspect. Orange juice
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finding support around its 50-day moving average, and cotton
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Cattle contracts started the day mixed, but firmed up
throughout trading as buyers stepped in. Live cattle
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to make a move to the upside out of a pullback on the daily chart, and feeder
cattle
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and leaving a potentially bullish tail. Pork bellies
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off the 50-day moving average, but are still seemingly forming a head-and-shoulders top, with lean hogs
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contract low.
Corn
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despite the recent sale of over 700,000 metric tons to China in the past two
weeks and possibly due to the USDA’s unchanged demand forecast. Wheat
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soybeans
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downside out of triangle patterns. Soy meal
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lower lows, finishing down 0.70 at 146.90.
Copper
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rally out of a pullback to an area near the 50% retracement level, and silver
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continuing to trade in a low-volatility situation near its contract low.
Energy futures sold off early in the session, but found
some support and recouped at least part of their losses. Crude oil
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no effect in curtailing supply. Unleaded gasoline
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retesting the November lows, while natural gas
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narrow-range inside day. Heating oil
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held up at support near Friday’s low.
Finally, in the currencies, dollar index futures
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range between its high of 116.80 and its low of 115.27. This aided the
British pound
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average. Euro FX futures
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close, while Swiss francs
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Japanese yen
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implosion.