Here’s How To Catch That Rally
If you’ve missed the reflex rally in stock index futures
over the past two days, there have been multiple indications of an impending up-move on the TM.com Website.
Two days ago in Tuesday’s Futures
Market Recap, stock index futures set up Turtle Soup Plus One Buy reversal
setups for yesterday. The market followed through today with the
Nasdaq 100 futures
(
NDU1 |
Quote |
Chart |
News |
PowerRating) rallying as many as 54 (76 from the lows)
before settling up 23.50 at 1659.50.
The spooz
(
SPU1 |
Quote |
Chart |
News |
PowerRating) also
set up a Turtle Soup Plus One
Buying opportunity today and rallied as many as 18.00 before closing up 1205.50
at 14.00.
Dow futures
(
DJU1 |
Quote |
Chart |
News |
PowerRating) closed 65.0 higher at 10,485.0.
Last night in her Futures
Perspective, Carolyn Boroden called a “Time Alert” in the Nasdaq
100 futures. Time alerts suggest the increased chance of a change in market
direction. In her intraday Price
Action Levels subscription service, Carolyn also provided price points
for setting up the long side.
Today we also had three up-pointing indicators on TM.com’s
Market
Bias Indicators Page. Three signals here is a critical mass and generally
provides a higher-than-normal chance for index futures to follow through in the
direction of the signals. Dave Landry also pointed out this in his Futures
Markets Outlook.
Debt futures closed mixed but bounced off lows that held
at support pointed out in the Levels From The Bond Pit in
the Futures Indicators section. September T-bonds
(
USU1 |
Quote |
Chart |
News |
PowerRating) slipped
one tick to 102 28/32. 10-year notes
(
TYU1 |
Quote |
Chart |
News |
PowerRating) are now a
Pullback From Highs contract. Both contracts left an ominous (bearish) gap today
that is suggestive of a top and that perhaps bond traders know that tomorrow’s
GDP report will be stronger than the consensus 1%.
August feeder cattle
(
FCQ1 |
Quote |
Chart |
News |
PowerRating) appeared on last night’s Implosion-5
List and made good on an Off The Blocks short entry. At this point, my
interpretation of the lap down opening is it is a break of a down-sloping
neckline out of a down-sloping right shoulder from a head-and-shoulders top.
Using traditional measured move analysis, this suggests feeders will fill the
gap window left back from May 15. However, today also sets up a Turtle Soup
reversal, which could either occur today, tomorrow, or over the the next few
days. If there is a bounce higher, it is likely to be subdued as there is heavy
resistance at 89.750. Feeders closed .450 lower at 89.250.
August lean hogs
(
LHQ1 |
Quote |
Chart |
News |
PowerRating), a contract that
just nudged a
New 10-Day Highs yesterday, rallied to close up .450 at 69.600.