What’s Attracting Money From The Sidelines
The September S&P 500 futures stock index
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We are not yet out of the woods, but the positive bias has helped
bring back more money from the sidelines.
While it looks like this may be the
bottom that many traders and investors are looking for, they should not become
overly excited and be expecting any big V-Bottom reversal. The
SPU2 is just about ready to hit the 20-day moving average on the daily chart.
The key is to proceed with caution, always with stop losses on trades. The Sept S&Ps closed at 893.70, up 40.00 or 4.72% points.
The Nasdaq 100 for September
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had a nice boost today pulling up and above the downtrend resistance line. A
move above this zone could have the Nasdaq testing its resistance at 981, which
is the 20-day moving average and then the secondary resistance at 1,000. The
Sept. Nasdaq 100 closed at 961.50 up 49.00 or 5.37%.
The September dollar
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rallied for the second session in a row. On a daily chart, the DXU2 looks like
it has formed a bottom island reversal, which could be bullish for the greenback. Overhead resistance is at 108 and secondary resistance is at 111.
DXU2 ended the session at 107.40 up .51.
Healthy rainfall this past weekend put fears of
drought and heat-related crop damage to rest. Grain and bean prices fell hard
today on the Chicago Board of Trade (CBOT). Rains covered a large portion of the
corn belt. December corn futures
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10 3/4 cents to $2.40 1/2 a bushel. November soybeans
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dropped 10. 3/4 cents or 2.09% on the wet-weather threat. November soybeans
closed at $5.04 a bushel. Wheat for September delivery
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fell 7 1/4 cents to $3.26 3/4 a bushel.
Trading at the NYMEX for energy futures, had September crude oil
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oil
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natural gas
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units.
In the metals, Aug. gold futures
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today, falling 80 cents to $302.50 a troy ounce. Sept. silver
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slipped 2.5 cents to $4.64 an ounce; and Sept. copper
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now rallying from a short-term bottom on the daily chart, moving higher to 69.90 a
pound up .85 or 1.23%.