They Lined Up
You had the signals
and arrows pointing south in stock index futures for a second day. Yesterday
we had the Turtle Soup Plus One Sell signals for the Dow futures
(
DJZ1 |
Quote |
Chart |
News |
PowerRating) and S&P futures
(
SPZ1 |
Quote |
Chart |
News |
PowerRating), a pattern that set up
Friday for Nasdaq 100 futures
(
NDZ1 |
Quote |
Chart |
News |
PowerRating), but didn’t actually
trigger until Monday. Yesterday we had three down signals from the Market
Bias Indicators Page. Today we had four down signals from the Market
Bias Indicators Page, two from the previous day and two from today. When
three or more signals from this page all line up in the same direction, the
chances of a move in that direction are even greater.
The same situation was in essence lining up again in
equity index futures, with Soup follow-through working to push Nasdaq
100s down 26.00 to 1345.00, the S&Ps down 13.80 to 1059.20, and Dow
futures down 98.0 to 9110.0.
The Conference Board’s consumer confidence cast a
pall on the opening from which stocks and market gauges never recovered.
Consumer confidence dipped to a seven-year low. In a week full of new
statistics on the economy, the consumer confidence report was seen as the
first in a series of reports likely to disappoint. This morning’s report
came in at 85.5, a full 10 points weaker than expected.
Traders bought the perceived safety of T-bonds
(
USZ1 |
Quote |
Chart |
News |
PowerRating),
sending them to new contract high, just a tick from the top, up 15/32 at 108
16/32. The contract is on the Momentum-5
List and made good on an Off The Blocks
long setup. T-bonds have been mentioned over successive nights in the
Nightly Futures Traders Report.
Also in the flight-to-safety theme, traders sold the
dollar early in favor of
Japanese yen
(
JYZ1 |
Quote |
Chart |
News |
PowerRating), euro FX futures
(
ECZ1 |
Quote |
Chart |
News |
PowerRating),
Swiss francs
(
SFZ1 |
Quote |
Chart |
News |
PowerRating) and the British pound
(
BPZ1 |
Quote |
Chart |
News |
PowerRating). But dollar index futures recovered, especially
against the yen and pound which ended nearly flat on the day.
February 2002 pork bellies
(
PBG2 |
Quote |
Chart |
News |
PowerRating)
showed up on the
Implosion-5 List last night and took their continuation cue to head south.
Bellies also made good an Off The Blocks
short setup, as well as their Pullback
From Lows pattern, a situation highlighted in Tuesday’s Futures
Setups.