Dartline™ First Look – morning directional planner
August 10, 2009, 7:00 am … The Standard & Poor’s 500 index futures down 1.70 to 1004.70, as traders wait for the Fed’s meeting this week for its assessment of the economy. Look for the latest monetary policy decision from the U.S. Federal Reserve on Wednesday. This week, the U.S. government will report July retail sales, and Wal-Mart Stores Inc. (WMT) – last $42.29 and Macy’s Inc. (C) – last $15.99, will announce their second quarter results. While evidence that the economy as a whole is turning around remains premature, as consumer demand is weak. Traders are fully aware that without the support of the U.S. consumer, which accounts for around 70 percent of the U.S. economy and 20 percent of the global economy, any recovery will soon fizzle out. … The FTSE 100 index of leading British shares was down 21.78 points, or 0.5 percent, at 4,709.78 while Germany’s DAX fell 35.78 points, or 0.7 percent, at 5,423.18. The CAC-40 in France was 20.57 points, or 0.6 percent, lower at 3,500.57. In Asia, Tokyo’s Nikkei 225 stock average rose 112.17 points, or 1.1 percent, to a ten-month high of 10,524.26 after an unexpected surge in Japanese machinery orders, while Hong Kong’s Hang Seng jumped 554.15 points, or 2.7 percent, to 20,929.52, its best finish in about 11 months. …By midday in Europe, benchmark crude for September delivery was down 42 cents to $70.51 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, the contract fell $1.01 to settle at $70.93. Dartline projects a move beyond the $75-per-barrel will be difficult without fundamental factors. Beginning of a correction phase is probable. However, current sentiment toward better economic prospects and a pickup in oil demand pickup could lead to a further upside. In London, Brent prices fell 27 cents to $73.32 a barrel on the ICE Futures exchange. … Maintain resistance of S&P 500 index at 1114.28, and support at 944.89. Goggle tab move below 992.18 would signal test to 944.89. Trading both sides and don’t wait too long to take profits or cut losses. Consider a downside bias when making trading decisions.