Directional Bias For The Day:
- S&P Futures are lower; moved down from 2877,50 at 4:00 AM to near 2875.00 level
- The odds are for a down day with elevated volatility though with a decent chance of moving sideways to up from pre-NYSE levels – watch for break above 2886.25 for change of fortune
- China trade and tariff news is impacting the sentiments
- No key economic data due:
Markets Around The World
- Markets in the East closed down
- European markets are mixed – Germany, France and Switzerland are up; U.K., Spain, Italy and STOXX 600 are lower
- Dollar index
- Crude Oil
- 10-yrs yield is at 2.439%, down from May 7 close of 2.448%;
- 30-years is at 2.852%, down from 2.862%
- 2-years yield is at 2.266%, down from 2.290%
- The 10-Year-&-2-Year spread is at 0.173, up from 0.158
- Critical support levels for S&P 500 are 2862.60, 2858,75 and 2848.63
- Critical resistance levels for S&P 500 are 2885.80, 2895.07 and 2813.03
- Key levels for eMini futures: break above 2886.25, the high of 8:30 AM and break below 2868.75, the low of 7:00 AM
- On Tuesday, at 4:00 PM, S&P future (June contract) closed at 2885.00 and the index closed at 2884.05 – a spread of about +1.00 points; futures closed at 2890.75 for the day; the fair value is -5.75
- Pre-NYSE session open, futures are lower – at 9:00 AM, S&P 500 futures were down by -11.75; Dow by -75 and NASDAQ by -47.50
Directional Bias Before Open
- Weekly: Uptrend
- Daily: Uptrend under pressure
- 120-Min: Down
- 30-Min: Side-Down
- 15-Min: Down-Side
- 6-Min: Down
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 sharply lower on Tuesday, May 7 in higher volume. The indices gapped down at the open and then for most of the day continue to trade lower before recovering part of the losses near the close of day’s trading.
U.S. stocks sold off on Tuesday, as increased uncertainty about a U.S.-China trade resolution contributed to a broad-based effort to de-risk. The 1.7% drop in the S&P 500, which was down as much as 2.4% at one point and flirting with its 50-day moving average (2856.44), sent the benchmark index below the 2900 level on a closing basis for the first time in nearly a month.
The Dow Jones Industrial Average dropped 1.8%, the Nasdaq Composite dropped 2.0%, and the Russell 2000 dropped 2.0%.
All 11 S&P 500 sectors finished lower as investors also sought to de-risk after a strong start to the year with an understanding that a meaningful trade resolution may take longer than expected. Nine of the 11 sectors finished with losses of at least 1.0%.
The 2-yr yield declined three basis points to 2.28%, and the 10-yr yield declined five basis points to 2.45%. The U.S. Dollar Index increased 0.1% to 97.60.
• The JOLTS report showed that job openings increased to 7.488 million in March from a revised 7.142 million (from 7.087 million) in February.
• Total outstanding consumer credit increased by $10.3 billion in March (Briefing.com consensus $17.0 billion) after increasing an upwardly revised $15.4 billion (from $15.2 billion) in February.