Directional Bias For The Day:
- S&P Futures are higher; moving up since 3:00 PM on Monday; fresh leg up since 3:30 AM
- The odds are for an up day with elevated volatility – watch for break below 2846.25 for change of fortune
- Trade talks influencing the sentiments
- Key economic data due
- Existing Home Sates (5.21M vs. 5.35M est.; 5.21M prev. ) at 10:00 AM
Markets Around The World
- Markets in the East closed mixed – Shanghai, Sydney and Seoul closed up; Hong Kong Tokyo, Sydney, Mumbai and Singapore were down
- European markets are higher
- Dollar index
- Crude Oil
- 10-yrs yield closed at 2.416%, up from May 17 close of 2.393%;
- 30-years is at 2.835%, up from 2.824%
- 2-years yield is at 2.229%, up from 2.200%
- The 10-Year-&-2-Year spread is at 0.187, down from 0.193
- Critical support levels for S&P 500 are 2831.29, 2817.66 and 2815.08
- Critical resistance levels for S&P 500 are 2865.19, 2875.28 and 2878.55
- Key levels for eMini futures: break above 2863.00, the high of 6:30 AM and break below 2846.25, the low of 3:00 AM
- On Monday, at 4:00 PM, S&P future (June contract) closed at 2841.25 and the index closed at 2840.23 – a spread of about +1.00 points; futures closed at 2844.00 for the day; the fair value is -2.75
- Pre-NYSE session open, futures are higher – at 8:30 AM, S&P 500 futures were up by +15.00; Dow by +157 and NASDAQ by +46.75
Directional Bias Before Open
- Weekly: Uptrend
- Daily: Uptrend under pressure
- 120-Min: Down-Side
- 30-Min: Side
- 15-Min: Side-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 lower on Monday, May 20 in lower volume. Major indices gapped down at the open and then made low for the day in the first half of trading. After rising for next few hours the indices tested the lows again in the last hour before closing near the open for the day. Most indices made doji candle that gapped down with relatively small upper and lower shadow. A break above or below Monday’s highs and lows will give clues for direction over the next few days.
The S&P 500 declined 0.7% on Monday, led lower by the technology stocks. Lingering concerns about Chinese retaliation against U.S. tech companies following U.S. scrutiny of Huawei Technologies dampened general buying interest.
The Dow Jones Industrial Average lost 0.3%, and the Russell 2000 lost 0.7%. The Nasdaq Composite underperformed with a loss of 1.5%.
The S&P 500 real estate (-1.6%), materials (-1.5%), and communication services (-1.2%) sectors joined the tech sector (-1.8%) as the day’s worst-performers. The utilities (+0.2%), financials (+0.1%), and energy (+0.1%) sectors were the lone sectors to finish higher.
U.S. Treasuries finished lower despite the negative disposition in equities. The 2-yr yield increased one basis point to 2.22%, and the 10-yr yield increased two basis points to 2.42%. The U.S. Dollar Index declined 0.1% to 97.95. WTI crude increased 0.9% to $63.30/bbl on rising U.S.-Iran tensions and OPEC+ producers signaling that production cuts may last throughout 2019.