Tuesday’s Futures Setups

• July 15, 2002
• TradingMarkets Editors

Today was a reversal of fortune for traders in
the Futures, as the September S&P 500 e-minis
(
ESU2 |
Quote |
Chart |
News |
PowerRating) futures
sold off in a big way at the beginning of the session. A couple 1,2,3 lower
bottoms had formed, showing signs of a possible reversal, but to no avail. At one
point a rumor was making its way around that the Fed may cut rates by 1/4 point
tomorrow, but there was not enough proof behind the story and it was mostly
discunted. Finally, as the S&P e-minis hit around the -3.0 Volatility Band zone, at 875.70,
a rally was sparked and by the time the 895.00 level was broken, a rally was on
the way. And the futures ended closing positive

The Nasdaq 100 e-mini for September
(
NQU2 |
Quote |
Chart |
News |
PowerRating) followed a similar trend. The Phlx Semiconductor Sector Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) helped bouy the Nasdaq 100 in the early part of trade, but
faded. Then at the end, the Semis were intrumental in helping bring the Nasdad
100 furutures back to positive territory.

Traders will be listening to the Federal Reserve
tomorrow in anticipation of any Fed intervention. Between rumors of interest
rate cuts or more corporate book keeping scandals, we will have to sit tight.

 Click Here for the TradingMarkets.com Market Bias Indicators

Three
currencies that rallied from pullbacks 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) continues its
impressive moves, but be warned, things that rise fast could fall fast
as well. Cocoa could fall victim to profit taking. A break below the 1750 resistance level
could send cocoa to the 1671 retracement 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.