Directional Bias For The Day:
- S&P Futures are lower; fresh leg down since 7:00 AM
- The odds are for a down day with elevated volatility – watch for break above 2870.50 for change of fortune
- China trade and tariff news is still impacting the sentiments
- Key economic data due:
- PPI (0.2% vs. 0.2% est.; prev. 0.6%) at 8:30 AM
- Core PPI ((0.1% vs. 0.2% est.; prev. 0.3%) at 8:30 AM
- Trade Balance (-50.0B vs. -51.4B est.; -49.3B) at 8:30 AM
- Unemployment Claims ( 228K vs. 215K est.; prev. 230K) at 8:30 AM
Markets Around The World
- Markets in the East closed mostly down – Sydney was up
- European markets are lower
- Dollar index
- Crude Oil
- 10-yrs yield is at 2.442%, down from May 8 close of 2.482%;
- 30-years is at 2.864%, down from 2.889%
- 2-years yield is at 2.254%, down from 2.307%
- The 10-Year-&-2-Year spread is at 0.188, up from 0.175
- Critical support levels for S&P 500 are 2858,75, 2848.63 and 2836.03
- Critical resistance levels for S&P 500 are 2878.94, 2896.41 and 2895.07
- Key levels for eMini futures: break above 2870.50, the high of 7:00 AM and break below 2844.75, the low of March 31
- On Wednesday, at 4:00 PM, S&P future (June contract) closed at 2880.25 and the index closed at 2879.42 – a spread of about +1.25 points; futures closed at 2887.25 for the day; the fair value is -7.00
- Pre-NYSE session open, futures are lower – at 8:30 AM, S&P 500 futures were down by -25.75; Dow by -208 and NASDAQ by -86.50
Directional Bias Before Open
- Weekly: Uptrend
- Daily: Uptrend under pressure
- 120-Min: Down
- 30-Min: Down
- 15-Min: Down
- 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)||
The S&P 500 declined 0.2% on Wednesday, as investors remained cautious about a U.S.-China trade deal. The benchmark index was on pace to end a two-day slide, being up as much as 0.5% on optimism that a trade deal may still get done, but the recovery attempt faded in last 30 minutes of trading.
The Nasdaq Composite lost 0.3%, and the Russell 2000 lost 0.5%. The Dow Jones Industrial Average (unch) managed to finish unchanged.
The report raises uncertainty about when, if it all, a deal might get done with the tariff rate on $200 billion of Chinese imports set to increase on Friday. Nevertheless, the stock market traded with modest, but broad-based, gains during the afternoon before selling off into the close.
Most of the S&P 500 sectors finished little changed. The utilities (-1.4%) and communication services (-0.4%) sectors underperformed, while the health care (+0.1%) and real estate (+0.1%) sectors outperformed.
U.S. Treasuries lost steam, sending yields higher, as equities gained traction during the day. The 2-yr yield increased two basis points to 2.30%, and the 10-yr yield increased three basis points to 2.48%. The U.S. Dollar Index held firm, finishing unchanged at 97.62. WTI crude rose 1.2% to $62.12/bbl following bullish inventory data out of the Energy Information Administration.