China posted a weak services sector PMI for July as it fell to a record low. There were mixed PMI reports out of Europe; which didn’t help sentiment. At 9 AM CT we see the July ISM services report; it is expected to be up 0.5 to 56.5. Grains are lower after yesterday’s crop progress report showed the crops are in great shape; beans were helped by rain overnight.
Sept. eMini S&P Futures: It’s a Taylor Trading Technique Sell Short day. With the daily trend down it appears unlikely we’ll see a retracement toward Monday’s high; I would look for a move back to the previous overnight low around 1928.00 and the 1923.75 area as a pivot point for the selloff.
Sept eMini Russell Futures: TTT Sell Short day. The 1117.60 area should now be resistance; the Fibonacci retracement level at 1113.00 will be the next downside target.
Sept. T Bonds: Breakout setup (NR4, doji). The 5 and 10 year T Notes have breakout setups as well; the 5 year is making a TTT Sell Short day type move. For the T bonds I’d watch Monday’s low of 137-28 as the reference price for a downside breakout. On the upside I’d start with the overnight high of 138-11. Be alert for a move after the 9 AM ISM report.
Sept. Yen: Breakout setup (ID, doji); Monday’s low of 9736 is the first reference level for a downside breakout.
Sept. Euro: It already sold off out of a breakout setup; last week’s low of 1.3369 is the first downside target. Trade or Fade (my breakout trade advisory) had the downside breakout level at 1.3403 with targets of 1.3382 and 1.3354.
Sept. British Pound: Last night’s STI comment was “TTT Sell day or breakout setup?” Thus far today looks like a Sell day as a move above Monday’s high failed. The daily trend is down; I might look to sell a break below last night’s low of 1.6840.
Sept. Canadian Dollar: Breakout setup; use Friday’s low of .9128 as a pivot point for extending the selloff.
Sept Australian Dollar: Breakout setup; Monday’s low of 9278 is the first reference for a downside breakout.
Dec. Gold: Breakout setup; it’s still stuck within Monday’s range.
Dec. Cotton: It’s a TTT Sell Short day; Monday’s high of 6461 lines up with old low resistance- that area is today’s reference level. I would use a selloff to look to get long- I think it may be trying to put in a bottom, like wheat did last week.
Sept. Crude Oil: It’s an “exit breakout buys” day so a TTT Sell Short day was anticipated. Yesterday’s rally stopped at old low resistance of 9668; watch the Fibonacci retracement level at 97.88 as a downside pivot.
Sept. Natural Gas: TTT Sell day. A rally is expected; the double top in the 3.890 area will be resistance for it.
Oct. Live Cattle: Breakout setup (ID, doji). On the upside watch 157.35 (Fib level), on the downside the first level is 155.82 (Fib retracement).
Nov. Soybeans: It’s on a TTT Sell day however the daily trend took over last night. Will it drop below the 1055 double bottom level today?
Sept. Wheat: TTT Sell Short day. Watch the 540 level as a downside pivot today; 535 should be support. A selloff today should setup it up for a TTT Buy day for Wednesday.
Dec. Soymeal: The daily trend is down; will it take out the triple bottom in the 340.00 area?
Essential Guide for Futures Swing Trading
In this guide, experienced trader and broker Scott Hoffman explains the trading methods he uses to analyze and trade the futures markets and to publish his trade advisory, Swing Trader’s Insight.
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