Directional Bias For The Day:
- S&P Futures are higher; drifting up since 8:00 AM
- Odds are for an up day – watch for break below 2873.00 for change of fortune
- Key economic data due:
- ADP Non-Farm Employment Change ( est. 184K; prev. 183K) at 8:15 AM
- ISM Non-Manufacturing PMI ( est. 58.1; prev. 59.7) at 10:00 AM
Markets Around The World
- Markets in the East closed mostly higher – Mumbai closed lower
- European markets are mostly up – Switzerland is down
- Dollar index
- Crude Oil
- 10-yrs yield closed at 2.481%, down from April 1 close of 2.497%;
- 30-years is at 2.888%, down from 2.890%
- 2-years yield is at 2.306%, down from 2.338%
- The 10-Year-&-2-Year spread is at 0.175, up from 0.159
- Critical support levels for S&P 500 are 2858.75, 2848.63 and 2836.03
- Critical resistance levels for S&P 500 are 2880.23, 2886.02 and 2904.47
- Key levels for eMini futures: break above 2884.00, the high of 4:00 AM and break below 2878.50, the low of 0:30 AM
- On Tuesday, at 4:00 PM, S&P future (June contract) closed at 2871.50 and the index closed at 2867.24 – a spread of about +4.25 points; futures closed at 2867.00 for the day; the fair value is +4.50
- Pre-NYSE session open, futures are higher – at 7:30 AM, S&P 500 futures were up by +16.25; Dow by +117 and NASDAQ by +49.00
Directional Bias Before Open
- Weekly: Uptrend
- Daily: Uptrend
- 120-Min: Up
- 30-Min: Up
- 15-Min: Up-Side
- 6-Min: Up-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 mostly lower on Tuesday, April 2 in mostly lower volume. S&P 500 and NASDAQ Composite advanced a little. Dow Jones Transportation Average traded in higher volume. The day’s price action was muted and indecisive. Most made doji and harami like candles.
The S&P 500 finished flat on Tuesday in a lackluster trading session. Price action was relatively muted for most of the day, as investors digested a 2.2% gain for the benchmark index over the prior three sessions.
The Dow Jones Industrial Average lost 0.3%, weighed down by Walgreens Boots Alliance (WBA 55.36, -8.13, -12.8%) after it issued disappointing earnings results and guidance. The Nasdaq Composite gained 0.3%, boosted by Facebook (FB 174.20, +5.50, +3.3%) after it received some positive commentary from Deutsche Bank regarding its e-commerce potential.
The S&P 500 consumer staples (-0.8%) and energy (-0.7%) sectors were Tuesday’s outright laggards. Conversely, the real estate (+0.9%), communication services (+0.4%), and materials (+0.4%) sectors outperformed.
U.S. Treasuries closed on a higher note, pushing yields slightly lower. The 2-yr yield decreased one basis point to 2.31%, and the 10-yr yield decreased two basis points to 2.48%. The U.S. Dollar Index increased 0.1% to 97.33. WTI crude rose 1.6% to $62.58/bbl, hitting a new five-month high.
• New orders for durable goods declined 1.6% in February (Briefing.com consensus -0.9%), pressured by a 4.8% drop in transportation equipment orders. Excluding transportation, new orders for durable goods were up 0.1% (Briefing.com consensus +0.2%).
o The key takeaway from the report is that business spending was sluggish in February, evidenced by the 0.1% decline in nondefense capital goods orders excluding aircraft. Shipments of those same goods were flat. This is a line item that fits a slower growth outlook.
- S&P 500 Sectors
|Sector||Relative Strength (Last Month – March)||Relative Strength (April)||%K vs. %D (April)|
|Consumer Discretionary||XLY (Cross-Over)||XLY||Above|
|Consumer Staples||XLP (Cross-Over)||SPY (Cross-Under)||Above|
|Utility||XLU (Cross-Over)||SPY (Cross-Under)||Below|
|Real Estate||XLRE (Cross-Over)||XLRE||Above|