09/02/2014 10:48am CDT
Stock index futures were up big this past month of August with the S&P making all-time highs. Some traders continue to express concerns that economic growth may not be strong enough to support stocks futures near record highs.
Monetary policy remains loose, boosting stock index futures. Fed policy is encouraging and still leaves other investment options as largely unattractive. Economic news has mostly been supportive. Stocks futures have risen largely in the month of August, despite skittish news from overseas that should have weighed on stocks futures last month. Overall, favorable economic news (including Fed news) outweighed worries about the Europe, Ukraine and Iraq. The thought that the FOMC could tighten sooner than later if we get great economic news, could send stocks index futures lower in price. No one really knows!
Stock index futures were up in August. The Dow futures were up 3.0 percent; the S&P 500 futures, up 3.6 percent; and the NASDAQ futures, up 4.7 percent.
For the year-to-date, major stock index futures are up as follows: the Dow, up 3.0 percent; the S&P 500, up 8.3 percent; and the NASDAQ, up 9.6 percent.
The week's highlight can be considered the Monday Labor Day holiday or Friday's employment situation report for August—depending on whether one is on vacation or not. The Fed's chairman has recently emphasized that the labor market is not where it needs to be. Traders will be studying the employment numbers and reviewing whether she is right or not. The employment report likely will play a key role in the next round of Fed forecasts for the economy, posted with the September 17 FOMC statement.
Technical outlook for the September S&P futures remain in a long-term bull market. In the short-term, the S&P futures are in an uptrend as well, with most chart followers targeting 2011 and then 2024 as their target for resistance. The S&P could go down to 1970 and then 1943 as a downside target. The market must go under 1943 for the short-term trend to change.
If you'd like to learn more about futures trading or the equity indices market specifically, please contact Jeffrey Friedman at 800-826-4124 or firstname.lastname@example.org.
E-mini S&P 500 Weekly Continuation Chart
Source: RJO Futures PRO