Directional Bias For The Day:
- S&P Futures are lower;
- The odds are for a down day with elevated volatility – watch for break above 2009.25 for change of fortune
- No key economic data due:
Markets Around The World
- Markets in the East closed mostly higher – Hong Kong was closed; Tokyo, Mumbai and Singapore were closed
- European markets are mostly lower – Switzerland is up
- Crude Oil
- 10-yrs yield closed at 1.734%, up from August 8 close of 1.716%;
- 30-years is at 2.248%, up from 2.232%
- 2-years yield is at 1.637%, up from 1.617%
- The 10-Year-&-2-Year spread is at 0.097, down from 0.099
- Is at 19.91 up from August 9 close of 17.97; Below 5-day SMA 19.83
- Recent high was 24.81 on August 5; recent low was 11.69 on July 25
- Critical support levels for S&P 500 are 2900.15, 2894.47 and 2880.62
- Critical resistance levels for S&P 500 are 2917.67, 2931.59 and 2938.72
- Key levels for eMini futures: break above 2909.25, the high of 5:30 AM and break below 2893.00, the low of 7:00 AM
- On Friday, at 4:00 PM, S&P future closed at 2918.50 and the index closed at 2918.65 – a spread of about +0.00 points; futures closed at 2919.75 for the day; the fair value is +1.25
- Pre-NYSE session open, futures are lower – at 8:00 AM, S&P 500 futures were down by -17.25; Dow by -145 and NASDAQ by -49.00
Directional Bias Before Open
- Weekly: Uptrend Under Pressure
- Daily: Uptrend Under Pressure
- 30-Min: Side-Down
- 15-Min: Side-Down
- 6-Min: Side-Down
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 Friday, August 8. The volume traded was lower than that on Thursday but higher than the 10-day average. Most indices made red harami candle. The indices gapped down at the open and then recovered some of the losses by midday.
For the week, major indices closed lower. The volume traded was lower than that last week but higher than 10-week average. Five of the S&P sectors – Energy, Industrial, Financials, Technology and Telecom – closed lower for the week.
The stock market wrapped up a volatile week on lower note, leaving the S&P 500 down 0.7% on Friday. Familiar trade concerns appeared to hinder buying conviction after a three-day advance in the benchmark index.
The Dow Jones Industrial Average lost 0.3%, the Nasdaq Composite lost 1.0%, and the Russell 2000 lost 1.3%.
Eight of the 11 S&P 500 sectors finished lower, led by the energy (-1.3%) and information technology (-1.3%) sectors. Energy stocks fell despite the sharp increase in oil prices ($54.61/bbl, +$2.09, +4.0%), while the tech sector was pressured by shares of semiconductor companies, many of which derive substantial revenue from China. The Philadelphia Semiconductor Index fell 1.8%.
Conversely, the defensive-oriented health care (+0.2%), real estate (+0.1%), and utilities (+0.04%) sectors were the lone sectors that finished higher.
U.S. Treasuries finished slightly lower, pushing yields higher across the curve. The 2-yr yield and the 10-yr yield increased two basis points each to 1.63% and 1.73%, respectively. The U.S. Dollar Index declined 0.1% to 97.54.
• The index for final demand increased 0.2% m/m in July (Briefing.com consensus +0.2%) while the index for final demand, excluding food and energy, decreased 0.1% m/m (Briefing.com consensus +0.2%). The m/m readings left the index for final demand up 1.7% yr/yr, unchanged from June. The index remains at its lowest level since January 2017. Core PPI was up 2.1% yr/yr, down from 2.3% in June.
o The key takeaway from the report is that inflationary pressure remains muted.