Stock Indices React to FOMC with Largest One Day Drop in 4 Months – Aug 1st Levels

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

I have noticed many times in the past that the “real direction to FOMC announcements, will usually come the following day”. Today was a perfect example of it…..

Last time we had a meaningful correction in the SP500 was April 4th. The correction lasted 10 days and measured 90 SP points from peak to valley 1885 to 1795 as you can see in the chart below ( sounds like I am talking about earthquakes….).If symmetry decides to give us a similar reaction we can see 1896 as the next target. In between we have a support zone at 1913 – 1918 first.

 

Daily chart of the Sept. mini SP 500 with the different levels for your review below:

 

EP - E-Mini S&P 500 Equalized Active Daily Continuation

EP – E-Mini S&P 500 Equalized Active Daily Continuation


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GOOD TRADING !

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not indicative to future results.

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Futures Trading Levels

Contract Sept. 2014 SP500 Nasdaq100 Dow Jones Mini Russell Dollar Index
Resistance 3 1996.50 4038.75 17074 1164.70 81.84
Resistance 2 1981.00 4004.50 16948 1154.10 81.75
Resistance 1 1954.50 3950.25 16740 1136.00 81.65
Pivot 1939.00 3916.00 16614 1125.40 81.56
Support 1 1912.50 3861.75 16406 1107.30 81.45
Support 2 1897.00 3827.50 16280 1096.70 81.36
Support 3 1870.50 3773.25 16072 1078.60 81.26
Contract December Gold Sept.Silver Sept. Crude Oil September Bonds Sept. Euro
Resistance 3 1311.8 2107.0 101.26 139 6/32 1.3434
Resistance 2 1305.3 2092.5 100.56 138 15/32 1.3419
Resistance 1 1294.3 2066.0 99.29 137 28/32 1.3404
Pivot 1287.8 2051.5 98.59 137 5/32 1.3389
Support 1 1276.8 2025.0 97.32 136 18/32 1.3374
Support 2 1270.3 2010.5 96.62 135 27/32 1.3359
Support 3 1259.3 1984.0 95.35 135 8/32 1.3344
Contract Dec Corn Sept. Wheat Nov. Beans Dec. SoyMeal Dec. bean Oil
Resistance 3 374.4 531.9 1096.00 356.43 36.99
Resistance 2 372.8 531.1 1091.00 353.87 36.84
Resistance 1 369.9 530.7 1086.50 351.33 36.62
Pivot 368.3 529.8 1081.50 348.77 36.47
Support 1 365.4 529.4 1077.0 346.2 36.3
Support 2 363.8 528.6 1072.00 343.67 36.10
Support 3 360.9 528.2 1067.50 341.13 35.88
Economic Reports

source: http://www.forexfactory.com/calendar.php

All times are Eastern time Zone (EST)

Date 4:15pm Currency Impact Detail Actual Forecast Previous Graph
FriAug 1  3:15am EUR Spanish Manufacturing PMI 54.8 54.6
3:45am EUR Italian Manufacturing PMI 52.8 52.6
4:00am EUR Final Manufacturing PMI 51.9 51.9
8:30am USD Non-Farm Employment Change 231K 288K
USD Unemployment Rate 6.1% 6.1%
USD Average Hourly Earnings m/m 0.2% 0.2%
USD Core PCE Price Index m/m 0.2% 0.2%
USD Personal Spending m/m 0.5% 0.2%
USD Personal Income m/m 0.4% 0.4%
9:45am USD Final Manufacturing PMI 56.3 56.3
9:55am USD Revised UoM Consumer Sentiment 81.5 81.3
USD Revised UoM Inflation Expectations 3.3%
10:00am USD ISM Manufacturing PMI 56.1 55.3
USD Construction Spending m/m 0.4% 0.1%
USD ISM Manufacturing Prices 58.6 58.0
All Day USD Total Vehicle Sales 16.8M 17.0M

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading.

 

Tags: > > > Posted in: Commodity Trading   | Day Trading   | Financial Futures   | Future Trading News   | Index Futures  

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