Directional Bias For The Day:
- S&P Futures are lower; moving sideways since 11:30 PM on Monday
- The odds are for a sideways to down day – watch for break above 2979.75 and break below 2963.50 for clarity
- Key economic data due:
- JOLTS Jobs Openings (est. 7.51M; prev. 7.45M) at 10:00 AM
- IBD/TIPP Economic Optimism ( est. 54.1; prev. 53.2)
Markets Around The World
- Markets in the East closed mostly down – Tokyo and Mumbai closed up
- European markets are lower
- Dollar index
- Crude Oil
- 10-yrs yield closed at 2.034%, down from July 8 close of 2.048%;
- 30-years is at 2.520%, down from 2.549%
- 2-years yield is at 1.888%, up from 1.863%
- The 10-Year-&-2-Year spread is at 0.134, down from 0.185
- Critical support levels for S&P 500 are 2970.09, 2963.25 and 2955.92
- Critical resistance levels for S&P 500 are 2978.52, 2980.76 and 2984.76
- Key levels for eMini futures: break above 2970.75, the high of 2:00 AM and break below 2963.50, the low of 4:00 AM
- On Monday, at 4:00 PM, S&P future (June contract) closed at 2979.75 and the index closed at 2975.95 – a spread of about +3.75 points; futures closed at 2978.50 for the day; the fair value is +1.25
- Pre-NYSE session open, futures are lower – at 8:15 AM, S&P 500 futures were down by -9.50; Dow by -92 and NASDAQ by -26.50
Directional Bias Before Open
- Weekly: Uptrend resumed
- Daily: Uptrend
- 30-Min: Down
- 15-Min: Down-Side
- 6-Min: 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 lower on Monday, July 8 in mixed volume. Dow Jones Industrial Average and Dow Jones Transportation Average traded in higher volume. Indices gapped down at the open and then mostly remained at that level for rest of the day.
The S&P 500 lost 0.5% on Monday, pressured by analyst downgrades and waning hopes for a 50-basis points rate cut at the end of the month. With the major indices near record highs, investors adopted a cautious mindset in front of speeches from several Fed officials this week.
The Dow Jones Industrial Average lost 0.4%, the Nasdaq Composite lost 0.8%, and the Russell 2000 lost 0.9%.
U.S. Treasuries finished little changed in a quiet session. The 2-yr yield increased one basis point to 1.89%, and the 10-yr yield declined one basis point to 2.03%. The U.S. Dollar Index increased 0.1% to 97.41. WTI crude increased 0.2% to $57.40/bbl.
• Consumer credit increased by $17.1 billion in May (Briefing.com consensus $17.7 billion) on the heels of an unrevised $17.5 billion in April.
o The key takeaway from the report is that the increase was driven by growth in both nonrevolving and revolving credit.