Where The Next Support Level May Be
The 50-day moving averages failed to hold as support for the index futures.
The contracts attempted to stop some of the bleeding a couple of times
Wednesday, with the S&P 500 index futures
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off a Haggerty 1-2-3 bottom in the last hour, but the contract could not sustain
the rally and slid into the close of the regular trading hours to end near its
low. The contract is now sitting at the 20-day moving average, which may be its
next area of support.
Nasdaq 100
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contract making a good tradable move out of the pattern on the intraday chart
before sliding back to the downside.
Internets
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PowerRating) (-5.06%), Semiconductors
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(-4.12%), High Tech
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(-3.39%) were the leaders in weighing down the equity futures.Â
The energies pulled back again today, but appear to be setting up for moves
back to the upside. Crude Oil
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PowerRating) setting up into a pullback from
its high of two days ago, with similar action taking place in the Natural Gas
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contract. Unleaded Gas
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PowerRating) followed through after Tuesday’s weak close in the bottom of the
range, while Heating Oil
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PowerRating) is continuing to chop around at the
level of its August high.
Cocoa
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PowerRating) is continuing to rally out of its recent pullback,
gaining another 20 points in Wednesday’s session. In other soft commodities, Orange Juice
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appears to be breaking down from a somewhat sloppy head and shoulders pattern,
falling to 101.45 in trading, and Cotton
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recaptured the 50-day moving average. Coffee
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with momentum, closing at its high for the session.
In metals, Gold
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selling, as it fell over $2 on the day. Silver
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scrape out a tiny gain, while Copper
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and still appears vulnerable to the downside as it continues to wedge upward off
its low in a counter trend rally.
Finally in grains, Corn
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rally out of its recent pullback, and now appears to be forming a sloping head
and shoulders along the 20-day moving average. Wheat
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gained over 2 points to continue its rally out of a recent pullback.
Soybeans
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PowerRating) continue to inch up the
20-day moving average, and appear to have the potential to retest this month’s
highs.Â