Chinese (Shanghai) stocks were up 4.8% after a Chinese securities regulator said that Chinese authorities will promote a “stable and healthy market”. This lowered concern that China wants to rein in their markets. The ECB left rates unchanged; this had little impact. Weekly retail sales reports were weak, and jobless claims came in as expected. Later we get the ISM services number at 9 AM. It’s expected to have risen, but still be under the 50% dividing line between expansion and contraction. Tomorrow morning we get the August employment report. It’s expected to have shown a decline of 247,000 jobs in August. There’s a bit more angst over this report after yesterday’s weak ADP report. Trade may be light later tomorrow ahead of the Labor Day weekend.
Sept. S&P: Rallying on a momentum buy day; bullish over 1000. Stocks needed to rebound ahead of the NFP report, and holiday weekends tend to be bullish.
Sept. NASDAQ: As with the Spoos, rallying on a momentum buy day. 1600 is a pivot point; 1615 is the next upside objective.
Sept T Bonds: Holding the 120 breakout area is good for the bulls. Expect some downside today; momentum is on a sell short signal.
Sept. Dollar Index: Back in the triangle; it tested the bottom line of the triangle at 78.03. Tomorrow should be a momentum buy day.
Sept. Yen: Selling off on a momentum sell short day. 10909 was the last intermediate high.
Sept. EuroFX: Channel formed; we’ll look for a directional move tomorrow.
Sept. British Pound: Broke trendline resistance at 16298. Tomorrow should be a momentum sell short day.
Sept. Canadian Dollar: NR4 breakout setup; watch trendline support at 9022, I have an upside breakout point at 9119.
Dec. Gold: Maintaining strength after yesterday’s channel breakout. Momentum is at short sale levels; look to buy a pullback. I’m watching the 975 area for now.
Dec. Silver: 1522.5 was the upside breakout point; look to buy a pullback toward there.
Dec. Cocoa: Momentum sell short day; consider selling a break of today’s low at 2920. The targets for a selloff are 2895 then 2870.
March Sugar: 2478 was the upside breakout point; holding that is key for the bulls in the short run. It’s a momentum buy day today, but is MACD setting up a bearish crossover?
Dec. Cotton: Triangle formed and an ID/NR breakout day. I’m watching breakout points at 5985 and 5787.
Oct. Crude Oil: Momentum is bullish. Yesterday was a doji and it held Fibonacci retracement support at 6772. 6742 was the low for August.
Oct. Live Cattle: Big range, good recovery yesterday; it’s setting up for a momentum sell short day tomorrow. 8760 is resistance.
Nov. Soybeans: Formed a double bottom yesterday with the mid August lows; but this also could be a head and shoulders forming. There’s resistance today at 971 then 975.
Dec. Wheat: Breakout setup; watch 494 and 480 as breakout points.
Dec Corn: Another breakout setup; breakout points are 323.50 and 314.00.
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