Directional Bias For The Day:
S&P Futures are higher at 8:30 AM; futures are breaking above a sideways move at 8:30 AM- The odds are for an up day with elevated volatility; watch for a break below 4705.50 for a change of sentiments
- Key economic data report due during the day:
- CPI (0.5% vs. 0.4% est.; prev. 0.8%) at 8:30AM
- Core CPI ( 0.6% vs. 0.5% est.; prev. 0.5%) at 8:30 AM
- Beige Book at 2:00 PM
Directional Bias Before Open:
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Key Levels:
- Critical support levels for S&P 500 are 4702.29, 4694.87, and 4683.35
- Critical resistance levels for S&P 500 are 4738.71, 4758.17, and 4764,35
- Key levels for E-mini futures: break above 4730.25, the high of 8:30 AM and break below 4705.50, the low of 7:15 AM
Pre-Open
- On Tuesday at 4:00 PM, S&P futures (March 2022) closed at 4705.00 and the index closed at 4713.07 – a spread of about -8.00 points; futures closed at 4705.00 for the day; the fair value is +0.00
- Pre-NYSE session open, futures are higher – at 8:15 AM, S&P 500 futures were up by +8.25; Dow by +73; and NASDAQ by +46.50
Markets Around The World
- Markets in the East closed higher
- European markets are mostly higher – Switzerland is down
- Currencies (Compared to two weeks ago):
Up Down - EUR/USD
- GBP/USD
- USD/JPY
- USD/CHF
- Dollar index
- AUD/USD
- NZD/USD
- USD/CAD
- INR/USD
- Commodities (Compared to two weeks ago):
- Energy futures are higher
- Precious metals are mixed
- Industrial metals are lower
- Soft commodities are mixed
- Treasuries (Compared to two weeks ago)
- 10-years yield closed at 1.736%, up +25.5 basis points from two weeks ago;
- 30-years is at 2.072%, up +16.9 basis points;
- 2-years yield is at 0.887%, up +12.5 basis points;
- The 10-Year-&-2-Year spread is at 0.849, up from 0.719
- The 30-Year-&-10-Year spread is at 0.336, down from 0.422
- VIX
- At 18.24 @ 7:45 AM; down from the last close; below 5-day SMA;
- Recent high = 23.33 on January 10; low = 16.34 on January 4
- Sentiment: Risk-On
The trend and patterns on various time frames for S&P 500:
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Weekly: |
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Daily |
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2-Hour (E-mini futures) |
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30-Minute (E-mini futures) |
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15-Minute (E-mini futures) |
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Previous Session
From Briefing.com:
The S&P 500 gained 0.9% on Tuesday in a continuation of dip-buying efforts that started yesterday afternoon. The Nasdaq Composite (+1.4%) and Russell 2000 (+1.1%) outperformed with gains over 1.0% while the Dow Jones Industrial Average (+0.5%) rose more modestly. […] The reaction in the Treasury market was perhaps more consequential for stocks. The 2-yr yield quickly backed down from 1.94% and settled unchanged at 0.90% while the 10-yr yield drifted lower by three basis points to 1.75%. The U.S. Dollar Index fell 0.4% to 95.62.
The S&P 500 information technology (+1.2%) led the market higher with the retracement in yields, but it was outdone by the 3% gain in the energy sector (+3.4%). Energy stocks followed oil prices ($81.14, +3.03, +3.9%) higher.
Conversely, the utilities (-0.9%), real estate (-0.2%), and consumer staples (-0.1%) sectors closed lower, as their defensive characteristics did not sit well with investors in the rebound-minded session.
[…]Tuesday’s economic data was limited to the NFIB Small Business Optimism Index, which December increased to 98.9 in December from 98.4 in November.
[…]
- Dow Jones Industrial Average -0.2% YTD
- S&P 500 -1.1% YTD
- Russell 2000 -2.3% YTD
- Nasdaq Composite -3.1% YTD