Stock index futures under pressure, while commodities rise

The Nasdaq Composite ($COMPX) ended the session lower by 39.04 points, or 1.4%, on Monday and it closed at 2,745.63. Seagate Technology (STX) (+9.00%) was the strongest stock in the Nasdaq-100. Starbucks (SBUX) (+1.45%) and Expedia (EXPE) (+1.06%) also added more than 1% on the day. Nine-tenths of the index's components posted a loss. The weakest performers were Micron Technology (MU) (-5.24%), Applied Materials (AMAT) (-4.60%), and F5 Networks (4.50%).

Nasdaq Composite (Figure 3)

Headlines on Monday also once again focused upon the commodities. Oil, gold, and silver were all on the rise. Oil nearly tested $107 a barrel and closed at $105.44, while this continued to push retail gasoline higher. Unleaded gasoline averaged $3.509 a gallon compared to $3.471 on Friday. Gold set a new intraday record high of $1,445 an ounce and settled at $1,434.50 on the Chicago Mercantile Exchange. Silver settled at $36.12 after striking another 31-year high of $36.74 an ounce. These commodities will continue to be in focus as internal strike in Arab countries with vast oil supplies and infrastructure continue.

Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.

Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.

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About the Author
Toni Hansen

Toni Hansen is president and co-founder of the Bastiat Group, Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.

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