Index Futures Primed

• April 17, 2001
• Marc Dupee

Stock index futures gapped lower but shot up as economic
reports suggested that the worst may be over for this slowdown and on the belief
that heavyweights such as Cisco may already have much of the lowered earnings
expectations priced in.
Nasdaq 100 futures
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leaving an outside expansion bar on the five minute chart as a tip-off of the
early strength off the low. The S&P futures
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similarly, logging a 25-handle rally. Primed to rally, a pullback to 1185 should
provide support in the S&Ps, as it is symmetrical with yesterday’s pullback
from the contract’s highest level. 

Consumer prices rose just .1% last month and industrial
production gained for the first time in six months. Together, the reports
suggest that the economy is recovering with low inflation. 

Euro FX futures
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lowest level of the year on the view that the European Central Bank remains
behind the curve in taking aggressive monetary policy action to stimulate a
flagging economy. The June contract is trading just shy of a four-month
low. 

May wheat
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are both making good on Turtle Soup Plus One Buy
setups. 

Treasury futures rallied overnight on the view that
stocks would decline after Cisco warned about its performance and said it would
cut up to 8,500 workers.
T-bonds
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PowerRating) and

10-year notes
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and Turtle Soup Buy-like set up, a pattern mentioned in yesterday’s Recap.