SubscribeDaily Futures Commentary August 4, 2009
Tuesday, August 4, 2009
Overnight action indicates a slight reversal in yesterday’s direction. Although it is too early to represent a change in trend to down or even an indication of a serious top, equity, currency, and commodity markets are called lower this morning while Treasuries and the Dollar are expected to open higher.
Profit-taking is the most likely reason for the decline in equity prices overnight. These markets have had a tremendous run since the second week in July and are due for a much deserved breather. Some traders feel that it is time for the S&P 500 to take over the leadership of this tech driven rally. A two to three day break in the trading action may allow this shift to take place.
The September E-mini NASDAQ is the market to watch for clues as to how deep the developing break may cut. The almost 4-week rally in the NASDAQ has taken place with a series of daily higher-highs. One important clue that this market is forming a short-term top will be the taking out of the previous day’s low.
Overnight weakness in the equity markets is leading …
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