Directional Bias For The Day:
- S&P Futures are higher; moving higher since 6:00 PM on Monday
- A symmetrical triangle is forming on 30-minute chart; a break above 2775.00 wil be bullish and a break below 2755.00 will be bearish
- Odds are for an up day with increased volatility
- Key economic data due:
- Industrial Production (est. 0.2%) at 9:15 AM
- Capacity Utilization (est. 78.2%) at 9:15 AM
Markets Around The World
- Markets in the East closed mostly higher – Shanghai and Singapore were down; Seoul was closed
- European markets are up
- Dollar index
- Crude Oil
- 10-yrs yield closed at 3.163% on October 15, up from October 12 close of 3.141%;
- 30-years is at 3.341%, up from 3.316%
- 2-years yield is at 2.857%, up from 2.853%
- The 10-Year-&-2-Year spread is at 0.306, up from 0.288
- Critical support levels for S&P 500 are 2750.69, 2745.15 and 2732.66
- Critical resistance levels for S&P 500 are 2775.05, 2784.11 and 2795.14
- Key levels for eMini futures: break above 2777.50, the high of 3:00 PM on October 15 and break below 2755.50, the low of 5:00 AM
- On Monday, at 4:00 PM, S&P future (December contract) closed at 2753.00 and the index closed at 2750.79 – a spread of about +2.25 points; futures closed at 2749.00 for the day; the fair value is +4.00
- Pre-NYSE session open, futures price action is to the upside – at 8:30 AM, S&P 500 futures were up +17.75; Dow by +179; and NASDAQ by +66.25
Directional Bias Before Open
- Weekly: Uptrend Under Pressure
- Daily: Uptrend Under Pressure
- 120-Min: Down-Side
- 30-Min: Side
- 15-Min: Side
- 6-Min: Up
The trend and patterns on various time frames for S&P 500 are:
|2-Hour (e-mini future)||
|30-Minute (e-mini future)||
|15-Minute (e-mini future)||
Major U.S. indices closed mixed on Monday October 15. The volume was lower than Friday’s volume but above day’s before the market turmoil. Russell 2000 and Dow Jones Transportation Average closed higher and other closed down.
Six of the S&P Sectors – Consumer Discretionary, Energy, Materials, Finance, Technology and Healthcare – were down. But only three sectors – XLE, XLK and XLV performed worse than SPY..
U.S. stocks oscillated around the S&P 500’s flat line on Monday before whipping noticeably lower in the final hour of trading. Renewed weaknesses in the information technology (-1.6%) and financials (0.5%) sectors coupled with ongoing concerns about the global economic growth outlook kept follow-through buying interest from Friday’s rally in check.
The S&P 500 lost 0.6% and closed below its 200-day moving average (2766.54), which is considered to be a key technical level. The tech-heavy Nasdaq Composite lost 0.9% and the Dow Jones Industrial Average lost 0.4%. Meanwhile, the small-cap Russell 2000 outperformed, climbing 0.6%.
[…] Treasury yields remained near their starting levels. The 2-yr note yield ticked one basis point higher to 2.85%, and the 10-yr note yield rose two basis points to 3.16%.
[…] merger news contributed to the relative strength of the industrials sector (+0.2%), which joined with the defensive-oriented consumer staples (+0.6%), real estate (+0.5%), and utilities (+0.4%) sectors to buck Monday’s weakness in the broader market.
- S&P 500 Sectors
|Sector||Daily Trend||Relative Strength (Last Month)||Relative Strength (Current)|
|Consumer Discretionary||Down (Break below trading zone – 114.80)||XLY||SPY|
|Consumer Staples||Side (Break Down Support = 53.49)||SPY||XLP|
|Energy||Up (From Side)||SPY||XLE|
|Technology||Up (Under Pressure)||XLK||SPY|
|Heath Care||Up (under Pressure)||XLV||SPY|