Why The S&P Close Was Important
Index futures mounted a rally off the 12 o’clock low and ran higher, before
losing some momentum heading into the Globex overnight session.
Dow Futures
(
DJZ2 |
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PowerRating) went down in the last hour, but managed to close
over 50 points to the positive, with the S&Ps
(
SPZ2 |
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positive close over the psychologically important 800 level. Nasdaq 100
Futures
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NDZ2 |
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PowerRating) ended the day up 2 points above Monday’s close.
The last-half action in the indices took money away from the bond market,
with 10-year Notes
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TYZ2 |
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Treasury Bond
(
USZ2 |
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In softs, Cocoa
(
CCZ2 |
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PowerRating) continued its parabolic rise amid
political tensions in the Ivory Coast. Orange Juice
(
JOX2 |
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PowerRating) hit a new
20-day low and becomes a potential Turtle Soup candidate, while Coffee
(
KCZ2 |
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moved above the 20-day moving average for the second consecutive day. Sugar
(
SBH3 |
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PowerRating)
continued its momentum move, breaking out to a new contract high, with Cotton
(
CTZ |
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slipping slightly in Tuesday’s session.
Pork Bellies
(
PBG3 |
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PowerRating) exploded out of a pullback to the 20-day
moving average, gaining 3.00 to 75.25, along with Lean Hogs
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PowerRating)
bouncing to the upside out off the same moving average and an upward trendline.
The rest of the meat complex also closed positive, with both Live
Cattle
(
LCZ2 |
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PowerRating) and Feeder Cattle
(
FCV2 |
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on range expansion.
The U.S. dollar
(
DXZ2 |
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PowerRating) rallied as currency traders came back for
the dollar as the US market improved intraday. The rest of the group was sold
off in response, as the Euro
(
ECZ2 |
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PowerRating), Swiss franc
(
SFZ2 |
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PowerRating), Japanese
yen
(
JYZ2 |
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PowerRating),
British pound
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BPZ2 |
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PowerRating) and the Canadian dollar
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CDZ2 |
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finished in the red at the stoppage of Tuesday’s trading.
Metals also suffered on the strength of the index futures, as Gold
(
GCZ2 |
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PowerRating) fell nearly $4 per ounce. Silver
(
SIZ2 |
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PowerRating) slipped by
0.07 and Copper
(
HGZ2 |
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PowerRating) managed to close positive, albeit just
barely.
Grains were hit with a wave of selling again Tuesday, reversing Monday’s
positive action. Soybeans
(
SX2 |
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PowerRating) were the hardest hit, with Corn
(
CZ2 |
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PowerRating) coming in second. Wheat
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WZ2 |
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PowerRating)
was the best performer, ending the day unchanged, while
Bean Oil
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BOZ2 |
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PowerRating) and Soy Meal
(
SMZ2 |
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PowerRating) finished out in the
red.