Textbook Example
A reversal of fortune has moved the markets for
the past two trading days, each day ending with a climactic surge. Volume was
not as heavy today as yesterday, but the news was just as good. Many stocks
found support and reversed to the upside off of the support levels. The March
Nasdaq 100 futures
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NDH2 |
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PowerRating) contract is showing a textbook example ofÂ
testing support. Today the March contract continued a new move to the upside by
closing higher to 1553.50, an increase of 12.00 on the day. The March S&P
500 futures
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SPH2 |
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PowerRating) contract closed at its high today. It tested
support yesterday at 1100, then closed today at 1130.40, a gain of 14.90. This
gives us a positive bias for a potential short-term rally. The March Dow futures
contract
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DJH2 |
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PowerRating) is following a similar pattern as the Nasdaq 100 and
S&Ps. After testing the 9600 support level, the March Dow futures closed
near the day’s high at 9907.00, which is right above the R1 Pivot point of 9858.
Yesterday the energies looked like they were
setting up for further declines, with the March heating oil, unleaded gas and
crude oil contracts forming head-and-shoulder tops. Heating oil prices rose
Thursday amid forecasts for colder weather. A cold front and an area of low
pressure were pushing heavy rain and snow through the central and eastern U.S.
early Thursday, with up to a foot of snow forecast for some areas. This helped
fuel the fire for heating oil which influenced other energies. March heating oil
(
HOH2 |
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PowerRating) bounced on its support and closed higher, up 1.85 to 53.16.
Precious metals were trading mixed in most of
today’s session. April gold
(
GCJ2 |
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PowerRating) traded lower to $282.80 an ounce.
March silver
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SIH2 |
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PowerRating) fell just above its support level to close at
422.30, down 7.0. And April platinum
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PLJ2 |
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PowerRating) broke below its 450
support level to end the day at 447.50, down 8.2.
Soybeans Are Boring
A boring weekly export sales report helped push
soybean futures lower earlier on Thursday at the Chicago Board of Trade. But by
the end of the day, they rallied higher and closed on a positive note. March
soybeans gained 2.5 to 430.25 a bushel. March soybean meal added 1.800 to
151.700. Wheat for March delivery rose 0.75 cent to $2.86 a bushel, and March
corn was unchanged at $2.06 a bushel.