S&P 500 futures rally on positive new home constructions

New home construction unexpectedly climbed to a four-year high in October, driving U.S. equity futures to slightly positive territory. The DEC12 E-mini S&P 500 futures are continuing their rally from below 1350, and today they have hit a high of 1386 thus far. Housing starts rose 3.6% to a 894,000 annual rate, the fastest since July 2008. Our former pivot/support level of 1430 is now our key resistance level for this market. If the E-mini S&P rallies further, we think 1430 will be a congestion point. Fiscal cliff negotiations are still a key factor at play.

In commodities news, corn and soybeans are up today, both trading positive at just under +1%. JAN 13 soybeans have rallied up through the $14 level, which we believe will serve as a support level going forward. DEC12 corn futures have bounced off of a key support level at $7.10 and are now trading at around $7.45. We see a potential congestion/resistance area at $7.90. We wouldn’t be surprised to see corn rally to this level.

Crude oil has rallied from below $85 to $90 in just a few sessions, and is actually down more than 2% today, trading at approximately $87.34. This market still looks to be in a bearish environment, and our $82 target is still a distinct possibility. DEC12 natural gas futures continue their bullish run this morning, trading up more than 2% at $3.79. We believe this market has strong support at the $3.60 level, and that the next major upside target is $4.20. Market players are looking ahead to a closely watched U.S. government report on natural gas supplies on Wednesday.

About the Author
Anthony Lazzara

Anthony Lazzara, CEO of Newport Beach, Calif., commodities investment firm Lido Isle Advisors, spent 10 years as a trader and floor broker at the Chicago Board of Trade and Chicago Mercantile Exchange. Anthony has significant experience in the energy, fixed income, and equity futures markets. After being a long-time independent futures trader, Anthony saw a tremendous opportunity to educate investors on how to invest in professional traders. Anthony is now focused on his duty as CEO of Lido Isle Advisors.

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome