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
- Currencies:
Up Down - EUR/USD
- GBP/USD
- AUD/USD
- NZD/USD
- Dollar index
- USD/JPY
- USD/CHF
- USD/CAD
- USD/INR
- Commodities:
Up Down - Crude Oil
- Gold
- Silver
- Copper
- Platinum
- Palladium
- Sugar
- Cotton
- NatGas
- Coffee
- Cocoa
- Bonds
- 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
Key Levels:
- 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
Pre-Open
- 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:
Monthly |
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Weekly: |
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Daily |
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2-Hour (e-mini future) |
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30-Minute (e-mini future) |
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15-Minute (e-mini future) |
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Previous Session
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.
From Briefing.com:
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 Discretionary | Down | SPY | XLY | Below |
Consumer Staples | Under Pressure | XLP | XLP | Cross-Under |
Energy | Down | SPY | SPY | Below |
Materials | Side | XLB | XLB | Cross-Under |
Industrials | Down | XLI (Cross – Over) | XLI | Below |
Finance | Down | XLF | XLF | Cross-Under |
Technology | Down | SPY | SPY | Below |
Utility | Under Pressure | XLU | XLU | Above |
Heath Care | Under Pressure | XLV (Cross – Over) | XLV | Cross-Under |
Real Estate | Up | XLRE | XLRE | Above |
Telecom | Down | SPY | SPY | Below |