Directional Bias For The Day:
- S&P Futures are lower; moving lower since 3:00 AM after making a high of 2821.00 a bearish divergence on 30-minute and 120-minute timeframes
- Odds are for a sideways and choppy day with good chances to go or down; elevated volatility
- Key economic data due:
- Building Permits (1.24M vs. 1.27M est.) at 8:30 AM
- Housing Starts (1.20M vs. 1.22M est.) at 8:30 AM
- FOMC Meeting Minutes at 2:00 AM
Markets Around The World
- Markets in the East closed mostly higher – Mumbai was down; Hong Kong was closed
- European markets are mostly down – U.K. is up
- Dollar index
- Crude Oil
- 10-yrs yield is at 3.152%, down from October 16 close of 3.156%;
- 30-years is at 3.320%, down from 3.330%
- 2-years yield is at 2.866%, down from 2.606%
- The 10-Year-&-2-Year spread is at 0.286, up from 0.250
- Critical support levels for S&P 500 are 2798.57, 2788.29 and 2772.84
- Critical resistance levels for S&P 500 are 2813.46, 2830.23 and 2843.89
- Key levels for eMini futures: break above 2812.75, the high of 7:00 AM and break below 2804.00, the low of 8:00 AM
- On Tuesday, at 4:00 PM, S&P future (December contract) closed at 2811.00 and the index closed at 2809.92 – a spread of about +1.00 points; futures closed at 2817.75 for the day; the fair value is -6.75
- Pre-NYSE session open, futures price action is to the downside – at 8:45 AM, S&P 500 futures were down -11.25; Dow by -122; and NASDAQ by -41.50
Directional Bias Before Open
- Weekly: Uptrend Under Pressure
- Daily: Uptrend Under Pressure
- 120-Min: Up-Side
- 30-Min: Up-Side
- 15-Min: Side-Down
- 6-Min: Down
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 sharply higher on Tuesday October 15. The volume was higher from Monday. 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.
All S&P Sectors were up but only three – Technology, Healthcare and Telecom – performed better than SPY.
Stocks cruised considerably higher on Tuesday, ignited by strong earnings at the open and then fueled by a resurgence in the heavily-weighted information technology sector (3.0%) throughout the day. The S&P 500 rocketed through its 200-day moving average, closing 2.2% higher and reducing its October loss to 3.6%.
As for the other major averages, the Dow Jones Industrial Average jumped 2.2%, the Nasdaq Composite surged 2.9%, and the Russell 2000 advanced 2.8%. The Dow and the Nasdaq both closed above their 200-day moving averages, but the Russell 2000 did not.
[…] Separately, other markets remained mostly dormant on Tuesday. Treasuries barely moved, subduing current fears of rising interest rates for now. The Fed-sensitive 2-yr yield added one basis point to 2.86%, while the benchmark 10-yr yield declined one basis point to 3.16%. The U.S. Dollar Index traded near its flat line (94.77), and WTI crude settled 0.1% higher at $71.91/bbl with investors keeping an eye on U.S.-Saudi-Arabia tensions. The CBOE Volatility Index (VIX) fell 16.1% to 17.87, retreating from last week’s seven-month high.
[…] The key takeaway from the [Industrial Production] report is that it revealed the strongest year-over-year growth rate in industrial production (+5.1%) since December 2010.
- S&P 500 Sectors
|Sector||Daily Trend (Visual)||Relative Strength (Last Month)||Relative Strength (Current)|
|Consumer Discretionary||Down (Below down trendline)||XLY||SPY|
|Consumer Staples||Down (Below a down trendline)||SPY||XLP|
|Technology||Up (Under Pressure)||XLK||SPY|
|Heath Care||Up (under Pressure)||XLV||XLV|