Thursday’s Futures Setups

• July 10, 2002
• TradingMarkets Editors

Today the S&P 500 dropped to levels that have
not been seen since 1997 and had the worst fall in ten months. Between the
Dow, Nasdaq and the S&P 500, the S&P 500 is the worst performing index. Throughout the day in the intraday chart it appeared that the
September S&P
500
(
SPU2 |
Quote |
Chart |
News |
PowerRating) and S&P 500 e-mini
(
ESU2 |
Quote |
Chart |
News |
PowerRating) were going to reverse out of a
1-2-3 bottom, but failed and ended up breaking below its 2.0 lower volatility band to close at 919.50, down 34.50. This is a lesson on how an up pattern, upon failing, can be interpreted as a sign the market will go lower.

The Nasdaq 100 futures for September

(
NDU2 |
Quote |
Chart |
News |
PowerRating) did not perform well either, dropping 31.50 or 3.17%. The Nasdaq 100
is trading at the 1997 levels. The area of 1,000 seemed like sound support, but that
level has now been violated.

Click Here for the TradingMarkets.com Market Bias Indicators

Three
currencies that rallied from pull backs from highs, are the September euro

(
ECU2 |
Quote |
Chart |
News |
PowerRating), September Japanese yen
(
JYH2 |
Quote |
Chart |
News |
PowerRating) and the September
British pound
(
BPU2 |
Quote |
Chart |
News |
PowerRating). All three of these currencies are on the

TradingMarkets.com Momentum List

September cocoa
(
CCU2 |
Quote |
Chart |
News |
PowerRating) has rallied up
again today to make new 14 year highs, above the 1750 resistance level. Cocoa is on the


TradingMarkets.com Momentum List.

Possible Turtle Soup Plus One Sell Setup.

Possible Turtle Soup Plus One
Buy Setup

Pullback From The High

Please note that
while there are strong trends in some commodities, one bar or a series of bars
forming a setup can sometimes indicate a contra move for the next day. This
contra move may not be long-lasting — maybe only for a day or two. Trading
with the main trend is always the highest probability trade.

Use stops on all your
trades.