Directional Bias For The Day:
- S&P Futures are higher; drifting higher since 4:30 PM on Friday in an upsloping flag, which is usually bearish
- The odds are for an up to sideways day from pre-open levels – watch for break below 2989.00 for change of fortune
- Key economic data due:
- HPI (est. 0.3%; prev. 0.4%) at 9:00 AM
- Existing Home Sales (est. 5.23M; prev. 5.34M) at 10:00 AM
- Richmond Manufacturing Index (est. 5; prev. 3) at 10:00 AM
Markets Around The World
- Markets in the East closed mostly higher – Mumbai was down
- European markets are higher
- Crude Oil
- 10-yrs yield is at 2.043%, down from July 22 close of 2.048%;
- 30-years is at 2.570%, down from 2.578%
- 2-years yield is at 1.823%, down from 1.823%
- The 10-Year-&-2-Year spread is at 0.220, down from 0.222
- Critical support levels for S&P 500 are 2982.50, 2976.65 and 2972.44
- Critical resistance levels for S&P 500 are 3000.00, 3006.02 and 3009.53
- Key levels for eMini futures: break above 3003.00, the high of 12:30 PM n July 19 and break below 2989.75, the low of 2:00 AM
- On Monday, at 4:00 PM, S&P future (June contract) closed at 2987.75 and the index closed at 2985.03 – a spread of about +2.75 points; futures closed at 2989.00 for the day; the fair value is -1.25
- Pre-NYSE session open, futures are higher – at 8:00 AM, S&P 500 futures were up by +10.75; Dow by +109 and NASDAQ by +34.25
Directional Bias Before Open
- Weekly: Uptrend resumed
- Daily: Uptrend
- 30-Min: Side-Up
- 15-Min: 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 mostly higher on Monday, July 22 in lower volume. Russell 20000 and NYSE Composite closed down. The day’s range was small. In the initial direction was unclear but from midday to close the indices advanced slowly.
The S&P 500 increased 0.3% on Monday in a tech-driven advance. Noticeable gains in Apple (AAPL 207.22, +4.63, +2.3%), Facebook (FB 202.32, +23.96, +2.0%), Amazon (AMZN 1985.63, +21.11, +1.1%), and Microsoft (MSFT 138.43, +1.81, +1.3%) contributed to the outperformance of the Nasdaq Composite (+0.7%).
The Dow Jones Industrial Average increased 0.1%, while the Russell 2000 declined 0.2%.
The S&P 500 information technology sector (+1.2%) was Monday’s outright leader, led by shares of Apple and semiconductor companies. The other ten S&P 500 sectors didn’t stray too far from their unchanged marks, although the consumer staples sector (-0.5%) did show relative weakness.
Interestingly, declining issues outpaced advancing issues in both the NYSE and Nasdaq on Monday.
U.S. Treasuries closed slightly higher in a quiet session. The 2-yr yield and the 10-yr yield declined one basis point each to 1.81% and 2.04%, respectively. The U.S. Dollar Index increased 0.2% to 97.29. WTI crude advanced 1.0% to $56.20/bbl amid lingering concerns that tensions in the Middle East will disrupt supply.