Directional Bias For The Day:
S&P Futures are higher; bouncing off oversold levels- The odds are for an up to sideways day with elevated volatility; watch for break below 3220.25 for change of fortune
- Key economic data due:
- HPI ( 0.6% vs. 0.4% est.; prev. 0.2% ) at 9:00 AM
- S&P/CS Composite-20 HPI ( 2.85% vs. 2.8% est.; prev. 2.6%) at 9:00 AM
- CB Consumer Confidence ( est. 132.6 ; prev. 131.6) at 10:00 AM
- Richmond Fed Manufacturing Index ( est. 10; prev. 10) at 10:00 AM
Directional Bias Before Open:
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Key Levels:
- Critical support levels for S&P 500 are 225.82, 3214.65 and 3205.38
- Critical resistance levels for S&P 500 are 3253.58, 3259.81 and 3280.61
- Key levels for eMini futures: break above 3259.50, the high of 8:30 PM and break below 3220.25, the low of 5:30 AM
Pre-Open
- On Monday, at 4:00 PM, S&P future (March 2020) closed at 3225.50 and the index closed at 3225.89 – a spread of about -0.50 points; futures closed at 3226.25 for the day; the fair value is -1.00
- Pre-NYSE session open, futures are higher – at 8:30 AM, S&P 500 futures were up by +12.75; Dow by +133 and NASDAQ by +67.75
Markets Around The World
- Markets in the East closed mixed – Shanghai, Tokyo, Sydney and Mumbai closed lower; Hong Kong, Seoul and Singapore closed higher;
- European markets are lower
- Currencies:
Up Down - GBP/USD
- Dollar index
- EUR/USD
- USD/JPY
- USD/CHF
- AUD/USD
- NZD/USD
- USD/CAD
- INR/USD
- Commodities:
Up Down - NatGas
- Palladium
- Crude Oil
- Gold
- Silver
- Copper
- Platinum
- Sugar
- Coffee
- Cotton
- Cocoa
- Bonds
- 10-yrs yield closed at 1.366%, down from February 21 close of 1.471%;
- 30-years is at 1.831%, down from 1.918%
- 2-years yield is at 1.252%, down from 1.350%
- The 10-Year-&-2-Year spread is at 0.114 down from 0.121
- VIX
- Is at 23.19 down -1.84 from February 24 close; above 5-day SMA;
- Next high resistance is 26.35, the high of February 24; the low support is the lower high of the gap at 18.88, the high of February 3
The trend and patterns on various time frames for S&P 500:
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
From Briefing.com:
The stock market sold off more than 3% on Monday following a surge in coronavirus cases outside China, including South Korea, Italy, and Iran. The Dow Jones Industrial Average (-3.6%), S&P 500 (-3.4%), and Russell 2000 (-3.0%) each turned negative for the year, while the Nasdaq Composite (-3.7%) gave up most of its monthly gains.
[…]South Korea’s Kospi fell 3.9%, and Italy’s MIB fell 5.4%. China’s Shanghai Composite declined just 0.3% amid reports that the rate of new coronavirus cases may have peaked in the region.
[…]In turn, de-risking efforts were widespread with all 11 S&P 500 sectors finishing in negative territory, including seven that dropped at least 3.0%. The energy (-4.7%), information technology (-4.2%), and consumer discretionary (-3.5%) sectors led the retreat, while the utilities sector (-1.2%) declined the least.
[…]Away from equities, investors continued to seek safety in gold ($1676.70/ozt, +27.80, +1.7%) and U.S. Treasuries given the growth concerns and weakness in stocks. Hedging interest against further downside was also on full display by the 46.6% surge in the CBOE Volatility Index (25.03, +7.95).
The 2-yr yield and the 10-yr yield fell nine basis points each to 1.26% and 1.38%, respectively. The U.S. Dollar Index finished flat at 99.30. WTI crude dropped 3.9%, or $2.09, to $51.25/bbl.
[…]Investors did not receive any economic data on Monday.
[…]