Directional Bias For The Day:
S&P Futures are lower at 8:15 AM; broke below an up-sloping flag at 6:15 AM after climbing up from 4429.50 at 9:45 PM to 4476.00 at 5:30 AM- The odds are for a down day with elevated volatility; watch for a break above 4477.75 for a change of sentiments
- Key economic data report due during the day:
- CB leading Index ( 0.8% est.; prev. 1.1%) at 10:00 AM
Directional Bias Before Open:
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Key Levels:
- Critical support levels for S&P 500 are 4466.45, 4447.47, and 4430.28
- Critical resistance levels for S&P 500 are 4477.95, 4500.00, and 4512.88
- Key levels for E-mini futures: break above 4477.75, the high of 5:00 AM and break below 4439.75, the low of 11:45 AM
Pre-Open
- On Thursday at 4:00 PM, S&P futures (March 2022) closed at 4474.25 and the index closed at 4482.73 – a spread of about -8.00 points; futures closed at 4474.75 for the day; the fair value is -0.50
- Pre-NYSE session open, futures are lower – at 8:15 AM, S&P 500 futures were down by -23.75; Dow by -84; and NASDAQ by -126.00
Markets Around The World
- Markets in the East closed mostly higher – Shanghai and Mumbai closed lower
- European markets are mixed – Germany, Italy, Switzerland, and STOXX 600 are up; the UK, France, and Spain are down
- Currencies (Compared to two weeks ago):
Up Down - EUR/USD
- GBP/USD
- INR/USD
- Dollar index
- USD/JPY
- USD/CHF
- AUD/USD
- NZD/USD
- USD/CAD
- Commodities (Compared to two weeks ago):
- Energy futures are higher
- Precious metals are higher
- Industrial metals are higher
- Soft commodities are mostly higher
- Treasuries (Compared to two weeks ago)
- 10-years yield closed at 1.827%, up +12.2 basis points from two weeks ago;
- 30-years is at 2.138%, up +5.0 basis points;
- 2-years yield is at 1.055%, up +21.3 basis points;
- The 10-Year-&-2-Year spread is at 0.772, up from 0.863
- The 30-Year-&-10-Year spread is at 0.311, down from 0.383
- VIX
- At 26.57 @ 7:00 AM; up from the last close; above 5-day SMA;
- Recent high = 27.39 on December 20, 2021; low = 17.36 on January 12
- Sentiment: Risk-Off
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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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 declined 1.1% on Thursday in another disappointing session, as investors doubled down on the inclination to sell into strength. The benchmark index faded a 1.5% gain and closed the session down 7.0% from its all-time high. The Nasdaq Composite fell 1.3% after being up 2.1% intraday. The Dow Jones Industrial Average fell 0.9% after being up 1.3% intraday. The Russell 2000 fell 1.9% after being up 2.0% intraday.
Ten of the 11 S&P 500 sectors closed lower after all 11 traded in positive territory in the morning. The consumer discretionary (-1.9%), materials (-1.4%), and information technology (-1.3%) sectors led the retreat, while the utilities sector (+0.1%) eked out a gain.
[…]The 10-yr yield increased just one basis point to 1.83% while the 2-yr yield rose four basis points to 1.05% on continued expectations for a more hawkish Fed. The U.S. Dollar Index gained 0.4% to 96.85. WTI crude futures fell 0.7%, or $0.57, to $86.29/bbl.
[…][…]
- Initial claims for the week ending January 15 increased by 55,000 to 286,000 (Briefing.com consensus 211,000) while continuing claims for the week ending January 8 increased by 84,000 to 1.635 million.
- […]
- Existing home sales declined 4.6% m/m in December to a seasonally adjusted annual rate of 6.18 million (Briefing.com consensus 6.42 million). Total sales in December were down 7.1% from a year ago. Total home sales in 2021, however, reached 6.12 million, which was up 8.5% year-over-year and the highest annual level since 2006.
- […]
- The Philadelphia Fed Index for January increased to 23.2 (Briefing.com consensus 20.0) from 15.4 in December.
- Dow Jones Industrial Average -4.5% YTD
- S&P 500 -6.0% YTD
- Russell 2000 -9.9% YTD
- Nasdaq Composite -9.5% YTD
Overseas:
- Europe: DAX +0.7%, FTSE -0.1%, CAC +0.3%
- Asia: Nikkei +1.1%, Hang Seng +3.4%, Shanghai -0.1%
Commodities:
- Crude Oil -0.05 @ 85.37
- Nat Gas -0.18 @ 3.67
- Gold -0.30 @ 1841.90
- Silver +0.46 @ 24.66
- Copper +0.09 @ 4.56