Index Futures’ Implosion Clue

• August 30, 2001
• Marc Dupee

The
Implosion-5 List gave fair warning that stock index futures could fall today
as S&P 500 futures
(
SPU1 |
Quote |
Chart |
News |
PowerRating) and 

Dow futures
(
DJU1 |
Quote |
Chart |
News |
PowerRating) both registered on it. Stock index futures gyrated
in the opening hour but then cascaded to new multi-month lows. Dow futures
traded below the 10,000 milestone.  

From the Momentum-5
List, T-bonds
(
USU1 |
Quote |
Chart |
News |
PowerRating) and
10-year notes
(
TYU1 |
Quote |
Chart |
News |
PowerRating) rallied early to make good on Off The Blocks
entries for a quarter-point each. Trading at or near contract highs, both
markets formed intraday topping patterns and have backed off from
highs. 

Currencies are continuing their recent bullish run after the European
Central Bank lowered interest rates .25%. From the Momentum-5
List,
euro FX futures
(
ECU1 |
Quote |
Chart |
News |
PowerRating) gyrated early to form what is now a
constructive setup on their daily chart: an outside day at a high. Intraday,
the contract is set up in a bullish flag. 

Also from the  Momentum-5
List, the
British pound
(
BPU1 |
Quote |
Chart |
News |
PowerRating) is trading in an intraday bullish flag at a
multi-month high.