Directional Bias For The Day:
- S&P Futures are higher; trending up since 8:30 AM on Tuesday; moving sideways to down since 7:30 AM
- Odds are for an up day – watch for break below 2689.00 for change of fortune
- Key economic data due:
- Prelim GPD (3.5% vs. 3.6% est. and 3.5% prev.) at 8:30 AM
- Good Trade Balance (-77.2B vs. -76.7B est. and -76.3B prev.) at 8:30 AM
- New Home Sales (est. 583K and prev. 553K) at 10:00 AM
- Fed Chair Powell Speech at 12:00 PM
Markets Around The World
- Markets in the East closed mostly higher – Sydney closed down
- European markets are mostly higher – U.K is lower
- Dollar index
- Crude Oil
- Cocoa (Unch.)
- 10-yrs yield is at 3.063%, up from November 27 close of 3.055%;
- 30-years is at 3.319%, unchanged
- 2-years yield is at 2.843%, up from 2.839%
- The 10-Year-&-2-Year spread is at 0.220, up from 0.216
- Critical support levels for S&P 500 are 2674.42, 2664.41 and 2655.89
- Critical resistance levels for S&P 500 are 2696.81, 2701.96 and 2717.48
- Key levels for eMini futures: break above 2697.25, the high of 7:30 AM and break below 2689.00, the low of 6:30 AM
- On Tuesday, at 4:00 PM, S&P future (December contract) closed at 2682.50 and the index closed at 2682.17 – a spread of about +0.25 points; futures closed at 2683.50 for the day; the fair value is -1.00
- Pre-NYSE session open, futures price action is to the upside – at 8:45 AM, S&P 500 futures were up by +12.25; Dow by +164; and NASDAQ by +42.75
Directional Bias Before Open
- Weekly: In Correction
- Daily: In Correction
- 120-Min: Side-Up
- 30-Min: Up
- 15-Min: Up
- 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 mostly higher on Tuesday November 27. Russell 2000 closed down. The volume was mixed. Dow Jones Industrial Average and Dow Jones Transportation Average traded in higher volume. S&P 500, NASDAQ and Russell 2000 traded in lower volume.
The S&P 500 recouped losses to finish with a gain of 0.3% in a volatile session on Tuesday. The stock market was able to shrug off early angst caused by President Donald Trump reiterating his hard-nosed tariff stance.
Meanwhile, the Dow Jones Industrial Average gained 0.4%, the Nasdaq Composite finished flat, and the Russell 2000 underperformed with a loss of 0.9%.
Subsequently, the trade-sensitive materials (-1.3%) and industrial (-0.2%) sectors underperformed the broader market. The energy group (-0.3%) also finished near the bottom of the sector standings.
On the other hand, the stock market assumed a defensive tone on Tuesday with the defensive-oriented health care (+1.0%), utilities (+0.9%), and consumer staples (+0.9%) sectors finishing with strong gains. The real estate (+0.6%) and communication services (+0.6%) sectors also had solid showings.
In the bond market, U.S. Treasuries finished on a modestly higher note with the belly of the curve showing relative strength. The 2-yr yield was unchanged at 2.83%, and the 10-yr yield decreased two basis points to 3.06%.
Overseas, European equities finished modestly lower on Tuesday with Germany’s DAX (-0.4%) showing relative weakness. Elsewhere, Asian equity markets finished mixed with China’s Shanghai Composite unchanged.
The key takeaway from the report [Conference Board’s Consumer Confidence] is that consumer confidence remains at historically strong levels due in large part to positive views on the labor market.
- S&P 500 Sectors
|Sector||Daily Trend (Visual)||Relative Strength (Last Month – October)||Relative Strength (Current)||%K vs. %D|
|Consumer Staples||Under Pressure||XLP||XLP||Above|
|Materials||Side||XLB||XLB||Cross – Over|
|Finance||Down||XLF||XLF||Cross – Over|
|Heath Care||Under Pressure||SPY||XLV||Below|
|Real Estate||Up||XLRE||XLRE||Cross – Over|