The S&P futures are experiencing only modest gains today despite the swift depreciation of the Dollar across the board. A weaker Greenback has normally correlated with stronger U. S. equities throughout the crisis. Hence, it’s a bit suspicious that the S&P futures are participating with the technical breakouts in the EUR/USD and GBP/USD. However, it could be that the Dollar’s depreciation and the rise of gold and now crude indicate an upcoming breakout to the topside in the S&P.

After all, a deviation from these correlations would be odd and signify an important turn of events, which is highly unlikely. Investors may opt to keep the S&P futures range bound as they await the wave of data coming Thursday.

Investors will receive key data from the U. S., China and Britain along with a BOE monetary policy decision. Not to mention the Trade Balance and Core Machine Orders releases from Japan mixed in. Therefore, we’ll get a much clearer picture of how global demand and consumption is shaping up through trade balance and industrial production numbers. The spotlight will be on China’s Industrial Production data since analysts have been debating whether the Chinese economy is cooling off. If Industrial Production comes in light, the Dollar’s depreciation and the S&P’s rise may both come to a halt. However, we believe the technical breakouts in the EUR/USD and GBP/USD are a strong buy signal regarding the health of the global economy. Therefore, we expect Thursday’s economic data should prove to be a positive catalyst for the markets. The Fed will release the Beige Book tomorrow. Investors will dig for information regarding the Fed’s more intricate sentiment regarding the health of America’s economy and their future plans regarding alternative liquidity measures.

Meanwhile, the S&P futures are looking to separate themselves from 1000 once again. However, investors should still be wary considering the August run to 1030+ faded into a retracement. The technical barriers to the topside are August highs and our uptrend lines. As for the downside, the S&P futures have Monday lows and of course the highly psychological 1000 level to depend on.

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