Signing A Reversal
Three up-signals from the
Market
Bias Indicators Page, as well as Turtle Soup Plus One Buy
signals from
December S&P
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neon-bright signs that stock index futures could reverse. The Nasdaq 100 cash
index came within 30 points of a 50% decline from its March low as well,
indicating an oversold market. Additionally, the Nasdaq 100 futures
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showed an unusual unwinding from the cash index yesterday, remaining much higher
in relation to the cash, with an average 77.00-point difference. Today’s Nasdaq
100 cash is up 100.00, while the Dec futures is up 87.00, a difference of 13.00
points, which is more in line with the basis difference that we have seen.Â
Part of yesterday’s strong down day in certain
commodities (and corresponding rally in gold, the euro, and bonds) was due to
the Chicago Purchasing Managers index, a leading indicator to today’s National
Association of Purchasing Manager’s report. Thursday’s Chicago index fell to
historically recession-causing levels, below 42.00, instilling fear that today’s
NAPM could signal excessive economic slowing. The NAPM came in slightly below
expectations at 47.7 vs. a consensus 48.0.
Copper is benefiting from this, and is up .90 at
85.45.Â
December dollar index futures
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along with stocks, as the buck still reacts negatively to the prospect of slower
economic growth and its Implosion-5 List
reading.Â
In the grains, wheat gapped higher and traded up early
to make good on its Turtle Soup Plus One Buy
signal but has pulled back and is trading at indecisive opening
levels.Â