Directional Bias For The Day:
S&P Futures are lower; moving sideways since 9:00 PM n Sunday- Daily and weekly trends are down
- Odds are for a sideways to down day with elevated volatility (sideways from pre-NYSE open level and down from last close) – watch for break above 2578.25 and break below 2567.25 for more clarity
- No key economic data due
Markets Around The World
- Markets in the East closed down – Tokyo was close
- European markets are lower
- Currencies:
Up Down - Dollar index
- EUR/USD
- USD/JPY
- USD/CHF
- AUD/USD
- NZD/USD
- GBP/USD
- USD/CAD
- USD/INR
- Commodities:
Up Down - NatGas
- Gold
- Palladium
- Cotton
- Crude Oil
- Silver
- Copper
- Platinum
- Sugar
- Coffee
- Cocoa
- Bonds
- 10-yrs yield is at 2.692%, down from January 11 close of 2.701%;
- 30-years is at 3.033%, down from 3.037%
- 2-years yield is at 2.541%, down from 2.549%
- The 10-Year-&-2-Year spread is at 0.151, down from 0.152
Key Levels:
- Critical support levels for S&P 500 are 2577.79, 2573.51 and 2568.89
- Critical resistance levels for S&P 500 are 2597.82, 2600.91 and 2619.04
- Key levels for eMini futures: break above 2577.25, the high of 7:30 AM and break below 2567.25, the low of 5:00 AM
Pre-Open
- On Friday, at 4:00 PM, S&P future (January contract) closed at 2596.25 and the index closed at 2596.26 – a spread of about +0.00 points; futures closed at 2595.00 for the day; the fair value is +1.25
- Pre-NYSE session open, futures price action is to the downside – at 9:00 AM, S&P 500 futures were down by -20.25; Dow by -194; and NASDAQ by -63.75
Directional Bias Before Open
- Weekly: Down
- Daily: Down
- 120-Min: Side
- 30-Min: Side-Down
- 15-Min: Down-Side
- 6-Min: Side
The trend and patterns on various time frames for S&P 500 are:
Monthly |
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Weekly: |
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Daily |
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2-Hour (e-mini future) |
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30-Minute (e-mini future) |
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15-Minute (e-mini future) |
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Previous Session
For the week, the major indices closed higher. The volume was mixed than previous week, which was only four-day week. S&P 500, NASDAQ Composite traded in lower volume. All S&P sectors closed higher.
From Briefing.com:
The S&P 500 gained 2.5% this week, rising for the third straight week and extending its rally to x% since its Christmas Eve low. The Dow Jones Industrial Average gained 2.4%, the Nasdaq Composite gained 3.5%, and the Russell 2000 gained 4.8%.
All 11 S&P 500 sectors finished higher with industrials (+4.1%), consumer discretionary (+3.7%), real estate (+4.0%), energy (+3.4%), and information technology (+3.4%) outperforming the broader market.
[…]Separately, the Federal Reserve released its minutes from its December policy meeting. The minutes revealed a view that the path of U.S. monetary policy is “less clear” than before, and a contention that the Fed can “afford to be patient” about future rate hikes.
[…]U.S. Treasuries lost ground amid the gain in equities, pushing yields higher across the curve. The 2-yr yield increased seven basis points to 2.55%, and the 10-yr yield increased four basis points to 2.70%. The U.S. Dollar Index lost 0.5% to 95.68, and WTI crude rose 7.8% to $51.68/bbl.
[…]
- S&P 500 Sectors
Sector | Daily Trend (Visual) | Relative Strength (Last Month – December) | Relative Strength (January) | %K vs. %D (January) |
Consumer Discretionary | Down | XLY (X-Over) | XLY | Cross-Over |
Consumer Staples | Down | XLP | SPY (Cross-Under) | Below |
Energy | Down | SPY | XLE (Cross-Over) | Cross-Over |
Materials | Down | XLB | XLB | Cross-Over |
Industrials | Down | SPY (X-Under) | XLI (Cross-Over) | Cross-Over |
Finance | Down | SPY (X-Under) | SPY | Below |
Technology | Down | SPY | XLK (Cross-Over) | Cross-Over |
Utility | Under Pressure | SPY (X-Under) | SPY | Below |
Heath Care | Down | XLV | SPY (Cross-Under) | Below |
Real Estate | Down | SPY (X-Under) | SPY | Below |
Telecom | Down | SPY | XTL (Cross-Over) | Cross-Over |