CAN STOCK INDEX FUTURES WEATHER THE INTEREST RATE STORM?
Nov 13
Let’s technically analyze the “grand daddy” of them all: The E-mini S&P 500 futures contract:
But first let’s take a look at what fundamentals have affected this market. S&P 500 futures
advanced to a new 15 week high in early November after Congress passed a two year budget
plan. In the five weeks leading up until the first week of this month futures performed very well
often ignoring, or only temporarily falling on bearish news. One example of this is how stock
index futures held up well in spite of the moderately bearish gross domestic product report. The
annualized third quarter advance gross domestic product increased 1.5%, which compared to the
estimate of an advance of 1.6%. Second quarter gross domestic product was up 3.9%.
In addition, stock index futures were able to only temporarily decline on news that the
Organization for Economic Cooperation and Development reduced its global economic growth
forecasts for the second time in three months. The OECD said world output will expand 2.9% in
2015 and 3.3% in 2016, which is down from 3% and 3.6% growth that was predicted in
September.
However, there has been some pressure on stock index futures more recently due to fears that the
Federal Open Committee will increase its fed funds rate at its December16 policy meeting. Rate
hike talk was ramped up when the October employment data showed nonfarm payrolls increased
271,000, which compared to the estimate of up 185,000.
MONTHLY E-MINI S&P 500 FUTURES
DAILY E-MINI S&P 500 FUTURES
Questions or comments about these markets please contact me at the information below. I look
forward to hearing from you.
Blake Edward Robben
Senior Market Strategist
Archer Financial Services
Toll Free: 888-797-7969
Office Direct: 312-242-7990
Office Hours: 7am to 3pm Central time
[email protected]
nterested in opening an account with us? Go to our interactive New Account application at
https://newaccount.admis.com/OnlineApp.aspx?office=969. It is fast, saves on postage and it’s 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.