Directional Bias For The Day:
- S&P Futures are lower; drifting down since 3:00 PM on Thursday after making bearish RSI divergences on 30-minute and 120-minute timeframes
- Odds are for a down day – watch for break above 2740.75 for change of fortune
- Key economic data due:
- G20 Meeting
Markets Around The World
- Markets in the East closed mostly lower – Sydney and Seoul were down
- European markets are lower
- Dollar index
- Crude Oil
- 10-yrs yield is at 3.016%, down from November 29 close of 3.035%;
- 30-years is at 3.310%, down from 3.328%
- 2-years yield is at 2.815%, up from 2.807%
- The 10-Year-&-2-Year spread is at 0.201, down from 0.228
- Critical support levels for S&P 500 are 2732.82, 2722.94 and 2717.67
- Critical resistance levels for S&P 500 are 2748.62, 2753.75 and 2764.24
- Key levels for eMini futures: break above 2735.75, the high of 5:30 AM and break below 2729.00, the low of 6:30 AM
- On Thursday, at 4:00 PM, S&P future (December contract) closed at 2738.75 and the index closed at 2737.76 – a spread of about +1.00 points; futures closed at 2744.25 for the day; the fair value is -5.50
- Pre-NYSE session open, futures price action is to the downside – at 7:45 AM, S&P 500 futures were down by -13.50; Dow by -136; and NASDAQ by -32.00
Directional Bias Before Open
- Weekly: In Correction
- Daily: In Correction
- 120-Min: Side-Up
- 30-Min: Side
- 15-Min: Side
- 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 lower on Thursday November 29. The volume was also lower from previous day. Market opened to the down side and then rose till 3:00 PM and breaking Wednesday’s high but then gave up the gains in the last hour or teading. Most indices made a harmai doji candle with almost equal sized upper and lower shadows indicating indecision.
The S&P 500 trimmed this week’s rally by 0.2% on Thursday with market participants shifting focus to this weekend’s G-20 meeting between U.S. President Donald Trump and China President Xi Jinping.
Meanwhile, the Dow Jones Industrial Average lost 0.1%, the Nasdaq Composite lost 0.3%, and the Russell 2000 lost 0.3%.
Personal income increased 0.5% in October (Briefing.com consensus +0.4%) while personal spending jumped 0.6% (Briefing.com consensus +0.4%). Real PCE, which is the component that factors into Q4 GDP forecasts, was up a solid 0.4%. The PCE Price Index was up 0.2% and the core PCE Price Index, which exclude food and energy, was up 0.1% (Briefing.com consensus +0.2%).
The tame inflation readings are the key takeaway from the report since they are supportive of the Federal Reserve taking a more deliberate approach to raising the fed funds rate.
Pending Home Sales decreased 2.6% in October (Briefing.com consensus +0.7%). Today’s reading follows a revised 0.7% increase in September (from +0.5%).
Initial claims for the week ending November 24 increased by 10,000 to 234,000 (Briefing.com consensus 218,000) while continuing claims for the week ending November 17 increased by 50,000 to 1.710 million.
The key takeaway from the report is that it is apt to contribute to assertions that the bottom for the trend in initial and continuing claims may have been reached in this cycle.
- 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||Cross – Over|
|Real Estate||Up||XLRE||XLRE||Cross – Over|