rounded corner
rounded corner
top border

Traders Looking Ahead to G-20 Summit


Bookmark and Share

June 12, 2019

STOCK INDEX FUTURES

U.S. stock index futures are lower due to ongoing trade tensions between the U.S. and China.

Expectations for progress toward ending the trade war are low with less than three weeks to go before proposed talks between the U.S. and Chinese leaders.

President Donald Trump said he wants to meet with President Xi Jinping at the June 28-29 G-20 summit in Osaka, Japan and will decide on whether it will be necessary to extend tariffs to almost all Chinese imports after the summit.

The consumer price index increased a seasonally adjusted 0.1% in May from the previous month, as expected, and the index, excluding volatile food and energy prices, were up .1%, which compares to the anticipated .2% gain.

The June Atlanta Federal Reserve Business Inflation Expectations report will be released at 9:00 central time. Last month it was 2%.

My view remains that the global reflation scenario is on track and easier credit conditions from most of the worlds central banks, including the Federal Reserve, are coming and will be the dominant fundamental that supports stock index futures in the long term.

CURRENCY FUTURES

The U.S. dollar ticked down following the U.S. CPI report.

The Canadian dollar and the Australian dollar are lower due to lower crude oil prices.

The Reserve Bank of Australia said its decision earlier this month to lower interest rates for the first time in three years was aimed at pursuing a lower unemployment rate.

INTEREST RATE MARKET FUTURES

The Treasury will auction 10 year notes today.

Traders continue to believe the Federal Reserve will be forced to cut interest rates to boost economic growth.

The next Federal Open Market Committee meeting is scheduled for June 19. No change in the fed funds rate is expected at the meeting.

However, financial futures markets are predicting there is an 87% probability that the Federal Open Market Committee will lower its fed funds rate by 25 basis points or more at its July 31 policy meeting. The probability yesterday was 79%. Another rate cut is likely later this year.

With the U.S.-China trade dispute apparently far from a resolution, the flight to quality vehicles, especially the thirty year Treasury bond futures are likely to trend higher.

SUPPORT AND RESISTANCE

June 19S&P 500

Support 2872.00 Resistance 2895.00

June 19 U.S. Dollar Index

Support 96.470 Resistance 96.830

June 19Euro Currency

Support 1.13070 Resistance 1.13550

June 19Japanese Yen

Support .92080 Resistance .92500

June 19Canadian Dollar

Support .75110 Resistance .75450

June 19Australian Dollar

Support .6940 Resistance .6972

September 19 Thirty Year Treasury Bonds

Support 153^8 Resistance 154^12

August 19Gold

Support 1326.0 Resistance 1345.0

July 19Copper

Support 2.6350 Resistance 2.6800

July 19 Crude Oil

Support 51.34 Resistance 53.55

Follow us on Twitter! @TradeADMIS

Be sure to bookmark and check the Archer Financial Services blog to access free research like this from Alan Bush and other commodity brokers. http://www.archerfinancials.com/resource-center/blog

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

Would you like to open an account with us? Go to our interactive New Account application at Open an Account. It is fast, saves on postage and its green.

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.



Recent articles from this author



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.

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2019 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy