This morning a weaker than expected consumer confidence number gave long stock investors an excuse to take profits or adjust their long positions.
Weakness in the equity indices at the mid-session is dictating the movement in several futures markets today. This is because traders who have been demanding risky assets are now going flat or seeking safety of lower yielding assets.
The September E-mini S&P 500 remains in an uptrend on the daily chart despite the weakness, but the main trend has turned down on the hourly chart for the first time since July 13th. Based on the current hourly swing the range is 980.00 to 966.00. This creates a retracement level at 973.00. Coupled with the opening of the day session creates a resistance cluster at 972.25 to 973.00. This may turn into a significant selling area later in the trading session.
September Treasury Bond and Treasury Note traders seem to be ignoring the new supply hitting the market this week and instead are seeing gains because of money leaving the equity markets.
After early morning pressure, the U.S. Dollar has turned around against most foreign currencies. Traders are selling higher risk currencies looking for safety in the U.S. Dollar. The September Euro once again failed to attract enough buying support to push it through the last swing top at 1.4337. A combination of bearish fundamentals and weak technicals is helping to put pressure on the September British Pound. Lately the Pound has been rallying along with global equities because of increased demand for risk. This flew in the face of bearish fundamentals that showed the U.K. economy was slowing and that the budget deficit was too large.
After completing a major retracement of the last swing down, December Gold is finally attracting selling pressure because of the weaker Dollar. Traders are liquidating long positions as the need for a hedge against a falling Dollar is diminishing.
Lately September Crude Oil has been moving lock-step with the equity markets as traders sought better returns in more risky assets and on the perception that a recovery in the global economy would lead to increased demand for energy. Rising gasoline inventories along with a weaker stock market is leading to selling pressure today. This is all coming after the crude oil completed a .618 retracement of its last sell-off.
November Soybeans are bucking the trend of weaker commodities and posting strong gains at the mid-session. Oversold conditions and the inability to break this market further have helped trigger a short-covering today.
The higher Dollar is putting pressure on currency sensitive commodities such as September Coffee. October Sugar is also feeling some heat from the stronger Dollar as demand has slowed at current levels because prices may have become too expensive.
Weakness in the equity indices at the mid-session is dictating the movement in several futures markets today. This is because traders who have been demanding risky assets are now going flat or seeking safety of lower yielding assets.
The September E-mini S&P 500 remains in an uptrend on the daily chart despite the weakness, but the main trend has turned down on the hourly chart for the first time since July 13th. Based on the current hourly swing the range is 980.00 to 966.00. This creates a retracement level at 973.00. Coupled with the opening of the day session creates a resistance cluster at 972.25 to 973.00. This may turn into a significant selling area later in the trading session.
September Treasury Bond and Treasury Note traders seem to be ignoring the new supply hitting the market this week and instead are seeing gains because of money leaving the equity markets.
After early morning pressure, the U.S. Dollar has turned around against most foreign currencies. Traders are selling higher risk currencies looking for safety in the U.S. Dollar. The September Euro once again failed to attract enough buying support to push it through the last swing top at 1.4337. A combination of bearish fundamentals and weak technicals is helping to put pressure on the September British Pound. Lately the Pound has been rallying along with global equities because of increased demand for risk. This flew in the face of bearish fundamentals that showed the U.K. economy was slowing and that the budget deficit was too large.
After completing a major retracement of the last swing down, December Gold is finally attracting selling pressure because of the weaker Dollar. Traders are liquidating long positions as the need for a hedge against a falling Dollar is diminishing.
Lately September Crude Oil has been moving lock-step with the equity markets as traders sought better returns in more risky assets and on the perception that a recovery in the global economy would lead to increased demand for energy. Rising gasoline inventories along with a weaker stock market is leading to selling pressure today. This is all coming after the crude oil completed a .618 retracement of its last sell-off.
November Soybeans are bucking the trend of weaker commodities and posting strong gains at the mid-session. Oversold conditions and the inability to break this market further have helped trigger a short-covering today.
The higher Dollar is putting pressure on currency sensitive commodities such as September Coffee. October Sugar is also feeling some heat from the stronger Dollar as demand has slowed at current levels because prices may have become too expensive.
