Friday’s Futures Setups
The Dec S&P 500
futures
(
SPZ2 |
Quote |
Chart |
News |
PowerRating) rallied to close at 854.50, up 13 or 1.54%, greatly influenced by
positive economic news: The US economy showed signs of strength for the first
time in two weeks as claims for unemployment benefits fell the most in two
months; orders for durable goods declined less than expected; and new home sales
increased.Â
In a mixed market today in the
equities, the
Nasdaq Composite
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) ended in negative territory. Part of this
was due to some profit-taking after the strong morning and yesterday’s positive
gains. The fall in the Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) also added to the
fall in the tech-heavy Nasdaq. The SOX was one of the leading sectors yesterday
but retreated today. In the early session of trading the Dec. Nasdaq 100
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) tried making a break above the 900 level, but retreated back to
close at 872 down 11.50 or 1.30%. For support and resistance zones on the NDZ2
click here for Carolyn Boroden’s Futures Perspectives.
In the chart above, December Lean Hogs
(
LHZ2 |
Quote |
Chart |
News |
PowerRating)
have worked up above the 38 resistance line. The next path of resistance is at
the 50% retracement level of 39.68.Stronger
cash hog prices and good retail demand are helping to fuel the gains in futures
prices. LHZ2 closed at 39.00 up .45 or 1.17%.
Possible
short candidates:
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Dec. cocoa |
possible turtle soup plus |
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Down
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Dec. cotton |
Pullback off of the |
Down |
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Dec. Nov. crude oil |
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Down |
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Dec. gold |
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Down |
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Oct. heating oil |
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Down |
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Possible long candidates:
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Dec. wheat |
Pullback from high |
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Dec. corn |
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Nov. frozen orange juice |
Pullback from high |
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Oct. live cattle |
Bullish Flag Pattern |
UP |
break above 70.20 |
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Oct. feeder cattle |
Saucer Pattern |
UP |
break up above 81.60 |
Please note that while there are
strong trends, one bar or a series of bars forming a setup can sometimes
indicate a contra move for the next day. This contra move may not be
long-lasting — maybe only for a day or two. Trading with the main trend is
always the highest probability trade.
Use stops on all your trades.