Wednesday’s Futures Setups

The Sept. 30 year bond
(USU2)
and the Sept. 10-year treasury note
(
TYU2 |
Quote |
Chart |
News |
PowerRating) both shot up
to 20-day highs, on the heels of the much-expected announcement that the Federal
Reserve will leave interest rates unchanged. The 30-year bond broke out above
the 110 level and closed at 110.25, up .93. The 10-year note cleared the 113
level to close at 113.31, up.62.

According to the Federal Reserve, the slow growth
in the U.S. economy has been caused primarily by weakness in the financial
markets and increased uncertainty related to problems in corporate reporting and
governance. Since March, the central bank has said the risks were balanced but
has now shifted its policy statement to say that economic weakness is a greater
risk to the economy than inflation, leaving the door open for future cuts.

 

The Sept. S&P 500
(
SPU2 |
Quote |
Chart |
News |
PowerRating) was close to
breaking through a recovery high at around the 911.00 level. It looked that way
for a while, but after the Fed report, the S&P retreated to the support level of
907 to 902. From there it weakened at the last hour and fell further to 885.29,
a loss of 17 or 1.88% on the day.

The Sept. Nasdaq
(
NDU2 |
Quote |
Chart |
News |
PowerRating) initially
started out very strong and seemed to have the potential to close positive after
trading in the positive zone and hitting the intraday high at 962. Then, like
the other markets, the Nasdaq sold off in the last hour of trade. The Nasdaq 100
futures closed at 912 down 31.50 or 3.34%.

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