Directional Bias For The Day:
- S&P Futures are higher; moving up since 3:30 AM
- Odds are for an up day with choppiness and elevated volatility
- Key economic data due:
- PPI (0.1% vs. 0.0% est. and 0.6% prev.) at 8:30 AM
- Core PPI (0.3% vs. 0.1 est. and 0.5% prev.) at 8:30 AM
Markets Around The World
- Markets in the East closed mixed – Shanghai, Hong Kong, Sydney and Mumbai closed up; Tokyo, Seoul and Singapore closed down
- European markets are higher
- Dollar index
- Crude Oil
- 10-yrs yield is at 2.870%, up from December 10 close of 2.856%;
- 30-years is at 3.122%, down from 3.129%
- 2-years yield is at 2.737%, up from 2.729%
- The 10-Year-&-2-Year spread is at 0.133, up from 1.27
- Critical support levels for S&P 500 are 2623.81, 2614.86 and 2596.29
- Critical resistance levels for S&P 500 are 2649.75, 2664.89 and 2681.36
- Key levels for eMini futures: break above 2682.25 the high of 11:00 AM on December 7 and break below 2662.25, the low of 8:00 AM
- On Monday, at 4:00 PM, S&P future (December contract) closed at 2637.50 and the index closed at 2637.72 – a spread of about -0.25 points; futures closed at 2643.00 for the day; the fair value is -5.50
- Pre-NYSE session open, futures price action is to the upside – at 8:45 AM, S&P 500 futures were up by +30.75; Dow by +305; and NASDAQ by +102.75
Directional Bias Before Open
- Weekly: Uptrend Under Pressure
- Daily: In Correction
- 120-Min: Down-Side
- 30-Min: Side-Up
- 15-Min: Side-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 mixed on Monday December 10. The volume was mostly lower. Russell 2000, Dow Jones Transportation Average and NYSE Composite closed down and Russell 2000 trade in higher volume.
Major indices gapped down at the open and then traded lower till 11:30 AM, when they staged a turn around and then traded higher for rest of the day. Most indices made small real body candle with long lower shadows and small upper shadows.
The S&P 500 gained 0.2% on Monday in what was yet another volatile day of trading on Wall Street. The benchmark index overcame a loss of 1.9% intraday despite the uncertainty surrounding trade, growth prospects, the path of interest rates, and geopolitics.
Meanwhile, the Dow Jones Industrial Average gained 0.1% after being down as much as 2.1%, Nasdaq Composite gained 0.7% after being down as much as 1.3%, and the Russell 2000 lost 0.3%, though it was down as much as 1.7%.
Separately, the bond market settled down from last week’s hot streak, pushing yields slightly higher. The 2-yr yield added two basis points to 2.72%, and the 10-yr yield added one basis point to 2.86%.
The U.S. Dollar Index climbed 0.7% to 97.20, benefiting largely at the expense of the British pound, which fell 1.7% to 1.2558 against the dollar as news of the delayed vote on the UK-EU Brexit plan stirred angst about the future of leadership in the UK and the specter of a messy “no deal” Brexit.
Overseas, global equities closed Monday on a lower note amid the uncertainty surrounding global trade issues and Brexit. Japan’s Nikkei led the Asian retreat with a loss of 2.1%, and Germany’s DAX led the European retreat with a loss of 1.5%.
- S&P 500 Sectors
|Sector||Daily Trend (Visual)||Relative Strength (Last Month – November)||Relative Strength (Current)||%K vs. %D|
|Consumer Staples||Under Pressure||XLP||XLP||Cross-Under|
|Industrials||Down||XLI (Cross – Over)||XLI||Below|
|Heath Care||Under Pressure||XLV (Cross – Over)||XLV||Cross-Under|