Directional Bias For The Day:
- S&P Futures are higher; moving sideways to up since 4:00 AM;
- Odds are for sideways to up day – watch for break below 2711.75 and above 2721.50 for more calrity
- No key economic data due:
Markets Around The World
- Markets in the East closed mixed – Hong Kong, Seoul and Singapore were up; Sydney and Mumbai were down; Shanghai and Tokyo were closed
- European markets are up
- Dollar index
- Crude Oil
- 10-yrs yield is at 2.666%, up from February 8 close of 2.632%;
- 30-years is at 3.006%, up from 2.976%
- 2-years yield is at 2.483%, up from 2.463%
- The 10-Year-&-2-Year spread is at 0.183, up from 0.169
- Critical support levels for S&P 500 are 2697.45, 2681.83 and 2675.79
- Critical resistance levels for S&P 500 are 2719.32, 2724.15 and 2733.00
- Key levels for eMini futures: break above 2720.75, the high of 8:00 AM and break below 2711.75, the low of 7:00 AM
- On Friday, at 4:00 PM, S&P future (January contract) closed at 2707.50 and the index closed at 2707.88 – a spread of about -0.25 points; futures closed at 2706.25 for the day; the fair value is +1.25
- Pre-NYSE session open, futures price action is to the upside – at 9:00 AM, S&P 500 futures were up by +8.25; Dow by +94; and NASDAQ by +33.75
Directional Bias Before Open
- Weekly: Downtrend reversing
- Daily: Up
- 120-Min: Down-Side
- 30-Min: Up
- 15-Min: Up-Side
- 6-Min: Side
The trend and patterns on various time frames for S&P 500:
|2-Hour (e-mini future)||
|30-Minute (e-mini future)||
|15-Minute (e-mini future)||
Major U.S. indices closed mixed on Friday February 8 in mostly lower volume. Dow Jones Industrial Average, Dow Jones Transportation Average and NYSE Composite closed down. S&P 500, NASDAQ Composite, Russell 2000 and Wilshire 5000 Total Market Index closed up.
For week ending on February 8, NYSE Composite closed down and all others were up. The volume was lower than previous week.
The S&P 500 gained 0.1% this week despite recurring concerns about a slowdown in global growth and a U.S. China trade deal leading to some profit-taking action.
The Dow Jones Industrial Average gained 0.2%, the Nasdaq Composite gained 0.5%, and the Russell 2000 gained 0.5%.
The utilities (+2.0%), information technology (+1.8%), industrials (+1.5%), and real estate (+1.4%) sectors were this week’s leaders. Conversely, the S&P 500 energy (-3.3%), materials (-1.6%), and financial (-1.5%) sectors were this week’s laggards.
Earnings reports this week were mixed and replete with disappointing guidance. Alphabet (GOOG) and Walt Disney (DIS) headlined the week’s reports but both exceeded expectations.
U.S. Treasuries saw some continued buying interest this week, pushing yields lower across the curve. The 2-yr yield decreased four basis points to 2.46%, and the 10-yr yield decreased six basis points to 2.63%. The U.S. Dollar Index increased 1.1% to 96.63 while WTI crude lost 4.5% to $52.76/bbl.
- S&P 500 Sectors
|Sector||Daily Trend (Visual)||Relative Strength (Last Month – January)||Relative Strength (February)||%K vs. %D (January)|
|Consumer Discretionary||Down||XLY||SPY (Cross-Under)||Above|
|Consumer Staples||Down||SPY (Cross-Under)||SPY||Cross-Over|
|Finance||Down||XLF (Cross-Over)||SPY (Cross-Under)||Above|
|Utility||Under Pressure||SPY (X-Under)||SPY||Cross-Over|
|Heath Care||Down||SPY (Cross-Under)||SPY||Cross-Over|
|Real Estate||Down||XLRE (Cross-Over)||XLRE||Above|