Why Tomorrow’s Bias Is Bullish…
The converging 20- and 50-day moving averages held as support for the S&P 500 index futures
(
SPU2 |
Quote |
Chart |
News |
PowerRating),
as the contract staged a rally after gapping downward on the open. Traders were
able to take advantage of a Haggerty opening reversal, a triangle breakout and a
pullback leading up to the 12:50 PM EDT high. From there it slid slightly with
choppy trading over the remainder of the day, but still managed to close in the
upper portion of its range, leaving a bullish bias for tomorrow.
The Nasdaq 100
(
NDU2 |
Quote |
Chart |
News |
PowerRating) performed in similar fashion, with the
contract topping out at the same time and trading much the same way as the spoos
over the rest of the session. Treasuries even joined in, as both the bond
contracts closed in the green.
Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) (+2.19%) and Internets
(
$DOT.X |
Quote |
Chart |
News |
PowerRating)
(+3.37) led the way in the equity markets in the move higher.
In metals, Gold
(
GCZ2 |
Quote |
Chart |
News |
PowerRating) enjoyed a solid session in spite of the
equity futures strength, gaining 3.60 to 314.50. Silver
(
SIZ2 |
Quote |
Chart |
News |
PowerRating)
climbed 0.05 higher as it moves in a counter trend rally off its low, and Copper
(
HGZ2 |
Quote |
Chart |
News |
PowerRating)
also closed in the red and still appears vulnerable to the downside as it
continues to wedge upward off its low.
Corn
(
CZ2 |
Quote |
Chart |
News |
PowerRating) fell again, breaking the neckline of a sloping head
and shoulders along the 20-day moving average. Wheat
(
WZ2 |
Quote |
Chart |
News |
PowerRating) fell to
unchanged after reversing it earlier upside action.
Soybeans
(
SX2 |
Quote |
Chart |
News |
PowerRating) and Soymeal
(
SMZ2 |
Quote |
Chart |
News |
PowerRating) are now appearing
vulnerable, testing the support of their recent uptrend lines.
You can’t stop Cocoa
(
CCZ2 |
Quote |
Chart |
News |
PowerRating), you can only hope to contain it. The
commodity continued its rally out of its recent pullback from high, adding
another 33 points to the upside in Thursday’s trading. The rest of the softs
failed to impress however, as Coffee
(
KCU2 |
Quote |
Chart |
News |
PowerRating) fell 0.05 to 50.75 and Cotton
(
CTZ2 |
Quote |
Chart |
News |
PowerRating)
fell 0.12, yet managed to get a close in the top of Thursday’s intraday range.
Sugar
(
SBV2 |
Quote |
Chart |
News |
PowerRating) continues to chop around, posting a modest gain, and Orange Juice
(
JOX2 |
Quote |
Chart |
News |
PowerRating)
continues to slide lower off the August high.
Lean Hogs
(
LHV2 |
Quote |
Chart |
News |
PowerRating) closed well yet continue to implode, hitting the
$30 level. Live Cattle
(
LCQ2 |
Quote |
Chart |
News |
PowerRating) posted a second solid day of gains, up
0.175 to 65.175, while Feeder Cattle
(
FCQ2 |
Quote |
Chart |
News |
PowerRating) slipped lower in the
session by 0.175.
Crude Oil
(
CLV2 |
Quote |
Chart |
News |
PowerRating) reversed its sell off from the past two days,
and could be setting up for another run at the $30 per barrel benchmark. Heating Oil
(
HOU2 |
Quote |
Chart |
News |
PowerRating)
and Unleaded Gas
(
HUV2 |
Quote |
Chart |
News |
PowerRating) joined the positive closers, with the unleaded contract setting
up to make a potential rally out of a pullback.