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Investors brace for lower open

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Stock futures are decidedly lower this morning as S&P futures (sp02u) fall 21.30 points to 775.50. NASDAQ futures (nd02u) have been deteriorating all morning and currently trade down 23.00 points at 879.00 and Dow futures (dj02u) are lower by 188 points at 7,510.

The selling in stock futures has cash finding its way into Treasuries in the early going with YIELDS lower across the board. The benchmark 10-year YIELD ($TNX.X) is plummeting to YIELD 3.63%, which is levels not seen since early November, immediately following last year's announcement by the Treasury that it would suspend further auctions of the 30-year Treasury.

Fair value for the S&P 500 today is $0.88. That price will not change during the session. HL Camp & Company has their computers set for program buying at $2.92 and set for selling at $2.02. Fair value for the NASDAQ-100 today is $3.30.

The U.S. Dollar is slightly weaker against the major foreign currencies as the U.S. Dollar Index (dx00y) $106.10 -0.52% trades lower.

Despite marginal weakness in the greenback, December Gold futures (gc02z) are down $2.10 (-0.66%) at $312.60.

Foreign markets hit

While U.S. investors brace for a lower open, overseas markets experienced some heavy losses.

In the Asia/Pacific region, Hong Kong's Hang Seng fell 3.31% to 9,971 and Japan's Nikkei 225 fell declined 2.62% to 9,947.72. Hardest hit was Thailand's SET, which dropped 3.48% to 374.44 and Indonesia's Jakarta Composite was lower by 3.57% at 460.02.

European markets saw declines in France's CAC 40, which fell 5.04% to 2,915, Germany's DAX declined 6.48% to 3,287 and the United Kingdom's FTSE 100 dropped 4.77% to 3,673.

Jeff Bailey
Senior Market Technician
Option Investor

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