STOCK INDEX FUTURES
NASDAQ futures advanced to new historical highs today, while the Russell 2000 is closing in on new contract highs.
Some of the gains were linked to news that the National Federation of Independent Business small business index advanced to the highest level since 1983 in February, which compares to 106.9 In January.
The consumer price index increased .2% in February, as expected, and the consumer price index, which excludes the volatile food and energy sectors, advanced .2%, which was also as anticipated.
NASDAQ futures often lead price movements in the major stock indexes, which suggests higher prices for S&P 500, Dow and Russell 2000 futures.
The U.S. dollar is lower for a third day. I expect the greenback will continue to trade lower today and longer term.
The euro currency is higher for the third consecutive day. I expect the euro trade higher.
Also, I continue to anticipate the double top resistance at the 1.2579 area in the March euro currency to be taken out, although it may take a while.
The Japanese yen fell to a two week low against the dollar, pressured by political turmoil engulfing Japanese Prime Minister Shinzo Abes government.
INTEREST RATE MARKET FUTURES
The Treasury will auction 30 year bonds today.
I have been and still am on board for three rate increases this year.
The probability of a fed funds rate increase at the Federal Open Market Committees March 21 policy meeting is 86%, which compares to 89% yesterday.
The main trend for the entire interest rate futures complex is lower, especially for the 30 year Treasury bonds.
SUPPORT AND RESISTANCE
June 18 S&P 500
Support 2783.00 Resistance 2809.00
March 18 U.S. Dollar Index
Support 89.550 Resistance 90.110
March 18 Euro Currency
Support 1.23120 Resistance 1.23970
March 18 Japanese Yen
Support .93160 Resistance .94150
March 18 Canadian Dollar
Support .77560 Resistance .78050
March 18 Australian Dollar
Support .7852 Resistance .7907
June 18 Thirty Year Treasury Bonds
Support 143^8 Resistance 144^20
April 18 Gold
Support 1311.0Resistance 1331.0
May 18 Copper
Support 3.1000 Resistance 3.1500
April 18 Crude Oil
Support 60.72 Resistance 61.81
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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. Past results are not indicative of future results or performance. 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.