Chi Town Pumps Up Tech Futures
The Nasdaq 100
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PowerRating) and the futures contract on the
index
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PowerRating) are getting a shot in the arm from the National Association of
Purchasing Management-Chicago, rallying after the manufacturing survey fell to
its slowest pace in 18 months. Traders viewed the report as clarifying Friday’s
surprisingly strong GDP numbers by providing evidence that the Fed’s year-long
campaign of interest rate hikes has been successful in slowing the economy and
staving off impending inflation. Monday’s report is also seen as a precursor to
Tuesday’s broader measure, the National Association of Purchasing Management.
Other signals from the futures indicators pages also
hinted that the Nasdaq could come back from its second-worst week ever. Two
signals from the Market
Bias Indicators Page pointing up and Turtle Soup Plus One Buy
readings in both the S&Ps
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PowerRating) and Nasdaq 100 futures together
suggested stock index futures could trade higher.
Dollar index futures are making good on a Turtle Soup Plus One
Sell setup, falling .26 on speculation that the European Central Bank will
be more likely to raise continental interest rates following reports Monday that
showed Euroland member countries raised manufacturing prices. The September
contract is in an early flag formation and Monday’s reprieve from 20-day highs is
likely to be a swing trade rather than a change in trend.
Scandals and reports of corruption and bribery continue
to weigh on the yen. The head of the government agency responsible for cleaning
up the 10s of billion of bad Japanese debt resigned after admitting he took bribes
while a member of parliament. The yen is on the Implosion-5 List
and is down slightly after a gap-down opening.