Directional Bias For The Day:
S&P Futures are higher 9:00 AM; trending up since 10:00 AM on Tuesday- The odds are for an up day; watch for a break below 4539.75 for a change of fortunes
- Key economic data report due during the day:
- Final Wholesale Inventory ( 2.1% est.; prev. 2.1%) at 10:00 AM
Directional Bias Before Open:
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Key Levels:
- Critical support levels for S&P 500 are 4531.32, 4513.66, and 4494.38
- Critical resistance levels for S&P 500 are 4569.29, 4595.31, and 4602.11
- Key levels for E-mini futures: break above 4557.00, the high of 8:00 AM and break below 4539.75, the low of 4:45 AM
Pre-Open
- On Tuesday at 4:00 PM, S&P futures (March 2022) closed at 4513.25 and the index closed at 4521.54 – a spread of about -8.25 points; futures closed at 4512.50 for the day; the fair value is +0.75
- Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +42.25; Dow by +251; and NASDAQ by +187.50
Markets Around The World
- Markets in the East closed higher
- European markets are higher
- Currencies (Compared to two weeks ago):
Up Down - EUR/USD
- GBP/USD
- USD/JPY
- USD/CHF
- USD/CAD
- Dollar index
- AUD/USD
- NZD/USD
- INR/USD
- Commodities (Compared to two weeks ago):
- Energy futures are higher
- Precious metals are lower
- Industrial metals are higher
- Soft commodities are mostly higher
- Treasuries (Compared to two weeks ago)
- 10-years yield closed at 1.933%, up +15.0 basis points from two weeks ago;
- 30-years is at 2.233%, up +10.4 basis points;
- 2-years yield is at 1.345%, up +32.9 basis points;
- The 10-Year-&-2-Year spread is at 0.588, down from 0.767
- The 30-Year-&-10-Year spread is at 0.300, down from 0.346
- VIX
- At 20.73 @ 6:45 AM; down from the last close; below the 5-day SMA;
- Recent high = 26.26 on February 4; low = 20.46 on February 2
- Sentiment: Risk-On
The trend and patterns in 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 0.8% on Tuesday, as the market drifted higher while investors digested another increase in interest rates and individual storylines. The Dow Jones Industrial Average (+1.1%), Nasdaq Composite (+1.3%), and Russell 2000 (+1.6%) each outperformed the benchmark index. Eight of the 11 S&P 500 sectors closed higher, including five that gained at least 1.0%. The materials sector (+1.6%) was the top-performer, and the heavily-weighted information technology sector (+1.3%) wasn’t too far behind.
The energy sector (-2.1%), on the other hand, declined 2% as oil prices fell below $90 per barrel ($89.43, -1.84, -2.0%)
[…]Regarding interest rates, the 10-yr yield came within three basis points of the 2.00% level before settling at 1.95%, or four basis points above yesterday’s settlement. The 2-yr yield rose five basis points to 1.34% amid lingering expectations for five rate hikes this year. The U.S. Dollar Index increased 0.2% to 95.60.
[…][…]
- The December Trade Balance Report showed a widening in the trade deficit to $80.7 billion (Briefing.com consensus -$79.6 billion) from an upwardly revised $79.3 billion (from -$80.2 billion) in November. December exports were $3.4 billion more than November exports while December imports were $4.8 million more than November imports.
- […]
- The NFIB Small Business Optimism Index for January decreased to 97.1 from 98.9 in December.
- Dow Jones Industrial Average -2.4% YTD
- S&P 500 -5.1% YTD
- Russell 2000 -8.9% YTD
- Nasdaq Composite -9.3% YTD
Overseas:
- Europe: DAX +0.2%, FTSE -0.1%, CAC +0.3%
- Asia: Nikkei +0.1%, Hang Seng -1.0%, Shanghai +0.7%
Commodities:
- Crude Oil -2.05@ 89.32
- Nat Gas -0.02 @ 4.23
- Gold +7.60 @ 1829.06
- Silver +0.18 @ 23.25
- Copper -0.01 @ 4.47