Directional Bias For The Day:
- S&P Futures are higher; moving up since 2:30 PM on Monday;
- Odds are for an up day – watch for break below 2720.25 for change of fortune
- Key economic data due:
- JOTS Jobs Openings (est. 6.84M; prev. 6.89M) at 10:00 AM
Sentiment & Catalyst
- Risk-on sentiment due to potential avoidance of government shutdown
Markets Around The World
- Markets in the East closed mostly higher – Mumbai and Singapore were down
- European markets are mostly up – U.K. is down
- Dollar index
- Crude Oil
- Cocoa (Unch.)
- 10-yrs yield is at 2.684%, up from February 11 close of 2.661%;
- 30-years is at 3.019%, up from 2.999%
- 2-years yield is at 2.496%, unchanged
- The 10-Year-&-2-Year spread is at 0.188, up from 0.165
- Critical support levels for S&P 500 are 2703.79, 2697.45 and 2681.83
- Critical resistance levels for S&P 500 are 2724.15, 2733.00 and 2738.98
- Key levels for eMini futures: break above 2730.25, the high of 7:30 AM and break below 2720.25, the low of 0:30 AM
- On Monday, at 4:00 PM, S&P future (January contract) closed at 2708.75 and the index closed at 2709.80 – a spread of about -1.00 points; futures closed at 2708.25 for the day; the fair value is +0.50
- Pre-NYSE session open, futures price action is to the upside – at 8:30 AM, S&P 500 futures were up by +18.50; Dow by +194; and NASDAQ by +53.50
Directional Bias Before Open
- Weekly: Downtrend reversing
- Daily: Up
- 120-Min: Up
- 30-Min: Up
- 15-Min: Up
- 6-Min: Up
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 mostly higher on Monday February 11 in mixed volume. Dow Jones Industrial Average closed down. Dow Jones Transportation Average and Russell 2000 traded in higher volume. DJIA, S&P 500 and NASDAQ Composite traded in lower volume. The day’s range was small.
The S&P 500 increased 0.1% on Monday in a lackluster session. The major averages wavered around their flat lines throughout the day with investors preferring to wait and see for progress on U.S.-China trade talks.
The Nasdaq Composite gained 0.1%, and the Dow Jones Industrial Average lost 0.2%. The Russell 2000, meanwhile, outperformed with a gain of 0.8%.
The S&P 500 industrials (+0.6%) and energy (+0.5%) sectors outperformed the broader market. Conversely, the communication services (-0.6%), health care (-0.1%), and utilities (-0.1%) sectors were the lone groups to finish with losses.
Relative strength from the transport stocks underpinned the outperformance of the industrial sector. The Dow Jones Transportation Average increased 1.3%, led by gains from Norfolk Southern (NSC 176.95, +5.49, +3.2%) and Avis Budget (CAR 27.58, +1.90, +7.4%).
U.S. Treasuries finished the day on a lower note, pushing yields higher across the curve. The 2-yr yield increased two basis points to 2.48%, and the 10-yr yield increased three basis points to 2.66%. The U.S. Dollar Index rose 0.4% to 97.05, setting a new high for 2019. WTI crude lost 0.7% to $52.39/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|
|Energy||Down||XLE (Cross-Over)||SPY (Cross-Under)||Above|
|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|