Directional Bias For The Day:
- S&P Futures are higher; moving higher since 3:30 PM on Monday; new leg up since 2:30 AM; broke above double bottom pattern
- The odds are for an up day with elevated volatility – watch for break below 2759.00 for change of fortune
- No key economic data due:
Markets Around The World
- Markets in the East closed mostly down – Sydney and Singapore were up
- European markets are higher
- Dollar index
- Crude Oil
- 10-yrs yield is at 2.125%, up from June 3 close of 2.081%;
- 30-years is at 2.576%, up from 2.548%
- 2-years yield is at 1.904%, up from 1.832%
- The 10-Year-&-2-Year spread is at 0.221, down from 0.249
- Critical support levels for S&P 500 are 2728.81, 2723.02 and 2718.05
- Critical resistance levels for S&P 500 are 2763.07, 2768.80 and 2776.74
- Key levels for eMini futures: break above 2769.50, the high of 11:30 AM on June 3 and break below 2759.00, the low of 7:30 AM
- On Monday, at 4:00 PM, S&P future (June contract) closed at 2743.75 and the index closed at 2744.45 – a spread of about -0.75 points; futures closed at 2749.50 for the day; the fair value is -5.75
- Pre-NYSE session open, futures are higher – at 8:30 AM, S&P 500 futures were up by +19.00; Dow by +168 and NASDAQ by +53.25
Directional Bias Before Open
- Weekly: Uptrend under pressure
- Daily: Uptrend under pressure
- 120-Min: Down
- 30-Min: Down-Side
- 15-Min: Side
- 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 mixed on Monday, June 3 in mostly higher volume. S&P 500, NASDAQ Composite and Wilshire 5000 Total Market Index closed lower and others were up. Dow Jones Transportation Average traded in lower volume. Indices are short term oversold region and ripe for a bounce.
The S&P 500 lost 0.3% on Monday, as shares of big tech companies fell on various reports that heightened antitrust concerns. Lingering trade and growth concerns also helped curb risk sentiment and underpin the strength in U.S. Treasuries. A swarm of buyers in the last 30 minutes of action, however, helped the broader market close off its session lows.
The tech-sensitive Nasdaq Composite fell 1.6%. The blue-chip Dow Jones Industrial Average (+0.02%) finished fractionally higher, and the small-cap Russell 2000 increased 0.3%.[…]
Growing expectations for a rate cut, and general growth concerns, helped send the 2-yr yield down 12 basis points to 1.83%. The 10-yr yield declined six basis points to 2.08%. The U.S. Dollar Index fell 0.5% to 97.22. WTI crude decreased 0.5% to $53.25/bbl, giving up an intraday rebound effort.[…]
• The ISM Manufacturing Index for May checked in at 52.1% (Briefing.com consensus 52.6%), down from 52.8% in April. The May reading is the lowest since October 2016. The May reading is the lowest since October 2016.
o The key takeaway from the report is that it reflects a deceleration in national manufacturing activity that will contribute to the burgeoning growth concerns for the U.S. economy. According to the ISM, the past relationship between the PMI and the overall economy indicates the PMI for May corresponds to a 2.7% increase in real GDP on an annualized basis.
• Total construction spending was unchanged in April (Briefing.com consensus +0.4%) following an upwardly revised 0.1% increase (from -0.9%) in March.
o The key takeaway from the report is that it was better than the headline suggests, after accounting for the March revision, yet that still didn’t change the fact that total construction spending is soft, evidenced by the 1.2% yr/yr decline that was driven by an 11.2% yr/yr decline in residential spending.