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S&P 500 and Dow Jones Futures at Record Highs


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December 4, 2017

STOCK INDEX FUTURES

S&P 500 and Dow Jones futures advanced to record highs today after early Saturday morning the Senate passed its version of a $1.4 trillion package of tax cuts in a narrow 51-49 vote. This vote moves the legislation closer to approval by the end of the year.

The Senate and House of Representatives will reconcile their respective versions before it becomes law, which would be the largest change to U.S. tax laws since the 1980s.

There was also support for futures when Fitch Ratings said world economic growth momentum continues to be strong and is likely to be sustained by an increasingly improving outlook for investment. World growth is now estimated to be 3.2% this year and 3.3% next year.

The 9:00 central time October factory orders report is expected to show a decline of .4%.

The computer models that I use continue to generate bullish signals for stock index futures.

The main trend for stock index futures is higher.

CURRENCY FUTURES

The U.S. dollar gained after the U.S. Senate passed a tax bill this weekend, boosting expectations for a faster pace of rate increases from the Federal Reserve.

The euro currency is lower in spite of higher than anticipated inflation numbers in the euro zone. Euro zone October producer prices rose .4% on the month when a .3% increase was estimated.

The British pound advanced due to reports that the U.K. and the European Union are close to an agreement that would allow Brexit negotiations to move forward.

The Japanese yen is lower after Bank of Japan Governor Kuroda attempted to play down speculation about an early tightening.

INTEREST RATE MARKET FUTURES

Futures are lower, especially at the long end of the curve after the Senate passed its version of a tax cut package.

There are no Federal Reserve speakers scheduled for today.

According to financial futures markets, the probability that the Federal Open Market Committee will increase its fed funds rate at the December 12-13 meeting is over than 99%.

SUPPORT AND RESISTANCE

December 17 S&P 500

Support 2652.00 Resistance 2667.00

December 17 U.S. Dollar Index

Support 92.960 Resistance 93.450

December 17 Euro Currency

Support 1.18320 Resistance 1.19030

December 17 Japanese Yen

Support .88350 Resistance .88950

December 17 Canadian Dollar

Support .78510 Resistance .79110

December 17 Australian Dollar

Support .7568 Resistance .7627

March 18 Thirty Year Treasury Bonds

Support 151^24 Resistance 153^0

February 18 Gold

Support 1272.0 Resistance 1284.0

March 18 Copper

Support 3.0850 Resistance 3.1200

January 18 Crude Oil

Support 57.31 Resistance 58.55

For more information about these markets, please contact Alan at 312.242.7911 or via email at alan.bush@admis.com. Thank you.

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Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading futures and options can be substantial. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff. Research analyst does not currently maintain positions in the commodities specified within this report. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.



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About the author


Alan Bush has been a commodity analyst since 1976 focusing on the fundamental and technical aspects of stock index, interest rate and foreign currency markets. He has authored several articles for Stocks Futures and Options magazine and produced the “Futures Tech Focus” program, which is a technically based market outlook.

Alan served on the faculty of Oakton College as instructor of a course entitled, “Principles of Technical Analysis.” He has been interviewed on many national television programs, appearing on the Nightly Business Report, CNBC, CNN Moneyline, Reuters Television and Web FN. In addition, he has been frequently quoted in The Wall Street Journal, USA Today, The Bond Buyer and the Chicago Tribune and has been regularly interviewed on Chicago’s WMAQ radio business reports.

Alan can be reached at (312) 242-7911, or via email at alan.bush@admis.com.

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