Russell 2000 Futures Hit Record Highs Yesterday

May 17, 2018

STOCK INDEX FUTURES

Yesterday the small-cap Russell 2000 stock index futures advanced to a record high.

Stock futures are lower today due to disappointing earnings and concerns about the ongoing trade talks between the U.S. and China.

New applications for jobless benefits increased more than expected. Initial claims rose 11,000 to a seasonally adjusted 222,000 in the week ended May 12. Economists forecast claims would rise to 215,000 in the latest week.

The Philadelphia Federal Reserve business outlook survey increased to 34.4 in May, which is up significantly from the April of reading of 23.2. Consensus expectations were for a reading of 21.

The 9:00 central time April leading indicators report is anticipated to be up .4%.

In the longer term, traders will likely gradually shift their focus of attention more toward the mostly stronger than expected corporate earnings reports and the still overall accommodative global interest rate policies and away from a variety of geopolitical worries.

CURRENCY FUTURES

The U.S. dollar advanced and the euro currency fell due to concerns about the formation of a new governing coalition in Italy, which could seek to cancel 250 billion euros in Italian debt from European creditors.

The Japanese yen is lower on news that Japan is considering tariffs on U.S. exports in retaliation against U.S. imposed steel and aluminum import tariffs.

The Canadian dollar and the Australian dollar are lower in spite of higher crude oil prices.

INTEREST RATE MARKET FUTURES

There was limited pressure on futures on news that the Philadelphia Federal Reserve business outlook survey came in stronger than expected.

Minneapolis Federal Reserve Bank PresidentNeel Kashkariwill speak at 9:45 and Dallas Federal Reserve Bank PresidentRobert Kaplan will speak at 12:30.

The probability of a fed funds rate increase from the FOMC at the June 13 meeting is almost 100%, which remains unchanged from yesterday.

SUPPORT AND RESISTANCE

June 18 S&P 500

Support 2713.00 Resistance 2728.00

June 18 U.S. Dollar Index

Support 93.000 Resistance 93.510

June 18 Euro Currency

Support 1.17970 Resistance 1.18670

June 18 Japanese Yen

Support .90360 Resistance .91050

June 18 Canadian Dollar

Support .78110 Resistance .78550

June 18 Australian Dollar

Support .7500 Resistance .7556

June 18 Thirty Year Treasury Bonds

Support 140^12 Resistance 141^4

June 18 Gold

Support 1283.0Resistance 1298.0

July 18 Copper

Support 3.0650 Resistance 3.1050

June 18 Crude Oil

Support 71.39 Resistance 72.45

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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.