Monday’s Futures Setups

The Sept. S&P 500 futures
(
SPU2 |
Quote |
Chart |
News |
PowerRating) looked a little confused today, not sure where to go. Its final
decision was down, closing at 865 down 19. The SPU2 did not give up all of its
gains enjoyed earlier in the week, but it fell to the -2.0 Volatility
Band (858) right around the support area. The month of August tends to be slower
and this week’s economic reports were not that good. With these two issues
hovering over the market, traders are not sure what to expect in the coming week
ahead.

The Sept. Nasdaq 100
(
NDU2 |
Quote |
Chart |
News |
PowerRating) did not
fare as well. The Nasdaq was wounded from the very beginning of the session,
being hampered by the Semiconductor Index. The Nasdaq 100 futures gave up all of
its gains from earlier in the week — and then some — and closed just
above support at 896, a loss of 21 for the session.

When equities are dropping, people become
nervous. And when people become nervous, they become conservative especially about money.
That’s why bonds and notes rallied today. The September 10-year Treasury
note
(
TYU2 |
Quote |
Chart |
News |
PowerRating) was pulling back from the high and within the last three
sessions rallied and broke above the 112 000 level to make a new 20-day high. It is now a possible Turtle Soup Plus-One sell setup candidate. TYU2 closed at
112.15 up 1.10. The Sept. US-30 year bond
(
USU2 |
Quote |
Chart |
News |
PowerRating) ended higher today
rising 1.50 to close at 107.75. Many opinions about whether the Fed should or
should not cut interest rates at the next FOMC meeting (Aug. 13) surfaced today.

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