Tuesday’s Futures Setups

Uncertainty plagued the markets today,
causing many traders to stay on the sidelines ahead of tomorrow’s FOMC meeting.
Last week, many Wall Street insiders were speaking of a possible Fed Interest
rate cut taking place tomorrow. Now the odds of that happening are slowing
deteriorating. Traders don’t want to get caught in the wrong place at the wrong
time, so staying on the sidelines is the strategy many are taking. There was not
a lot of volume to really move the market much today.

After coming off of a four-day winning streak,
the Sept S&P 500 (SPU2)
lost 5.79 to close at 902.

The Sept. Nasdaq 100 (NDU2)
faired better, losing in the first half of trade, but then putting together a
rally in the end to go green. The NDU2 rose 4.50 to end at 943.50.

Today at the Chicago Board of Trade (CBOT) where
Grain and soybean futures are traded, the government sharply cut production and
supply estimates across the board. This had a huge effect on soybean and corn
prices today. Corn and soybeans both jumped 5% or more in value, while wheat saw
a 3% price increase in the U.S. Department of Agriculture reports. November
soybeans
(
SX2 |
Quote |
Chart |
News |
PowerRating) rose 28 1/4 0r 5.38% cents to $5.53 1/2 a bushel.

 

In the chart above, November soybeans, has initial support at 550
and secondary support at 540. Overhead resistance is at 571 with
secondary resistance at 580.

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