Directional Bias For The Day:
- S&P Futures are little changed; drifting sideways since 4:00 PM on Friday;
- The odds are for a sideways to down day – watch for break below 3027.25 for change of fortune
- Watch for emerging Stochastic Bearish Divergence on daily charts
- No key economic data due:
Markets Around The World
- Markets in the East closed mostly lower – Sydney closed up
- European markets are mostly higher – Spain and Italy are down
- Crude Oil
- 10-yrs yield is at 2.053%, down from July 26 close of 2.081%;
- 30-years is at 2.578%, down from 2.601%
- 2-years yield is at 1.846%, down from 1.854%
- The 10-Year-&-2-Year spread is at 0.207, down from 0.227
- Critical support levels for S&P 500 are 3021.78, 3015.18 and 3012.59
- Critical resistance levels for S&P 500 are 3027.98, 3031.53 and 3037.53
- Key levels for eMini futures: break above 3027.25, the high of 7:30 AM and break below 3022.00, the low of 6:30 AM
- On Friday, at 4:00 PM, S&P future (June contract) closed at 3026.75 and the index closed at 3025.86 – a spread of about +1.00 points; futures closed at 3024.50 for the day; the fair value is +2.50
- Pre-NYSE session open, futures are slightly higher – at 9:00 AM, S&P 500 futures were up by +0.75; Dow by +17 and NASDAQ by +5.75
Directional Bias Before Open
- Weekly: Uptrend resumed
- Daily: Uptrend
- 30-Min: Up
- 15-Min: 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 higher on Friday, July 26 in lower volume. S&P 500 and NASDAQ Composite made all time highs. Dow Jones Industrial Average, NYSE Composite and Wilshire 5000 Total Market Index are near their respective all time highs. Dow Jones Transportation Average and Russell 2000 quite off their highs.
For the week, major indices closed higher but in mixed volume. Only tow S&P sectors – Energy and Utility – closed lower for the week.
The stock market wrapped up the week on a high note, as upbeat results from Alphabet (GOOG 1250.41, +118.29, +10.5%) and encouraging Q2 GDP data helped lift the S&P 500 (+0.7%) and Nasdaq Composite (+1.1%) to record closes. The Russell 2000 rose 1.1%, while the Dow Jones Industrial Average increased just 0.2%.
The S&P 500 communication services sector (+3.3%), which is home to Alphabet and Twitter, nearly tripled the advance in the runner-up consumer staples sector (+1.2%). Laggards included energy (-0.5%) and industrials (-0.2%), although losses were modest.
U.S. Treasuries finished the session with slight losses, pushing yields higher. The 2-yr yield increased two basis points to 1.87%, and the 10-yr yield increased one basis point to 2.08%. The U.S. Dollar Index advanced 0.2% to 98.01. WTI crude increased 0.3% to $56.19/bbl.
• According to the BEA, the advance estimate showed Q2 real GDP increased at a seasonally adjusted annual rate of 2.1% (Briefing.com consensus 1.8%) following a 3.1% increase in the first quarter. The GDP Price Deflator was up 2.4% (Briefing.com consensus 1.8%) after increasing 1.1% in the first quarter.
o The key takeaway from the report is that it revealed some impressive strength in the U.S. consumer, evidenced by the 4.3% growth in personal consumption expenditures (PCE), which was the second highest over the past 16 quarters. PCE contributed 2.85 percentage points to Q2 GDP growth.