Today’s sample of Futures Analysis from

Equity futures edged slightly better after trading most of the day lower and at the mid-point of the day-session charts. Traders tried to rally the indices early after a better than expected New Home Sales Report sent the Dow and S&P 500 futures to a new move high, but the failure by the NASDAQ to follow-through to the upside discouraged traders from buying at such lofty levels. Late in the trading session, the markets turned bullish when the indices held 50% of the day and the day session opening.

The friendly housing news was another sign that the economy may be turning upward, however, after a two-week rally, investors may begin focusing on value rather than the economy. This may mean that traders will be more selective about where they enter. Some traders may even use another rally as an excuse to take profits because prices have appreciated so much. Today’s rallies looked labored so do not be surprised by the start of a sizeable correction some time this week.

Financial futures markets closed lower. The early weakness in the stock market did not attract enough selling conviction to send money to the Treasuries. T-Bond and T-Note traders seemed content with keeping pressure on the downside while this week’s Treasury auction was taking place. An increase in supply usually attracts selling pressure unless acted upon by a surprise force. Today there were no surprises so the Treasuries remained under pressure throughout the day.

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