Index Futures Bifurcate

There is clear rotation out of tech and into cyclicals depicted in
stock index futures trading. 

Nasdaq 100 futures
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have been unable to
capitalize on a retracement of Monday morning’s gap-down opening. Naz traders
looked at the rally in Dow/S&Ps futures and the continued strong showing in
Microsoft (which weights 6% on the Naz 100). But weakness in the other heavy
hitters on the 100 cash index (Qualcomm, SDLI, Cicso, Oracle, and JDS Uniphase),
down 5% to 10% each, overwhelmed MSFT strength and is throwing the NDZ0 to
limit down curb levels. Lehman’s downgraded Cisco.

Strength in cyclicals is bolstering Dow index futures
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, from the Momentum-5
List
. This is apparent by looking at the strongest areas in equities: Forest
and paper products, chemicals and cyclicals. Dow futures are up 80
handles. 

Currencies lapped higher but have headed straight down
from their opening bars, demonstrating the continuing negative sentiment vis-à-vis
the dollar.
EuroFX
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, Swiss francs
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and
British pounds
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have come back to fill morning gaps and are trading
mixed but near Friday’s close. 

December live cattle
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 and January feeder cattle
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are both in Pullback From Highs
setups and should be monitored for moves above the high of the low bar day.

Cocoa
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and orange
juice

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, both on the
New 10-Day Low List
, and coffee
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 are all trading at
new contract lows. Further, juice is on the Implosion-5 List
and is trading at the bottom of Monday’s range in a tail (or graveyard doji
for candlestick watchers), presaging further downside.  

Cotton
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is trading at a 10-day high and is
up strongly in an outside day. This is a potentially strong technical indicator
predicating an upmove. 

Grains are all tilting lower. Bean oil and soybeans
are both Implosion-5
markets here with bean oil trading at a multi-month low.