Directional Bias For The Day:
- S&P Futures are lower to sideways;
- The odds are for a sideways to down day – watch for break above 2997.75 for change of fortune
- No key economic data due:
Directional Bias Before Open:
- Critical support levels for S&P 500 are 2995.04, 2986.39 and2976.31
- Critical resistance levels for S&P 500 are 3005.35, 3014.57 and 3021.99
- Key levels for eMini futures: break above 2997.50, the high of 6:00 AM and break below 2983.75, the low of 7:30 AM
- On Tuesday, at 4:00 PM, S&P future closed at 2995.25 and the index closed at 2995.99 – a spread of about -0.75 points; futures closed at 2994.50 for the day; the fair value is +0.75
- Pre-NYSE session open, futures are mixed – at 9:15 AM, S&P 500 futures were down by -0.75; Dow by up +10 and NASDAQ up by +0.25
Markets Around The World
- Markets in the East closed mixed – Shanghai, Hong Kong, Seoul and Singapore closed lower; Tokyo, Sydney and Mumbai were up
- European markets are mixed – Germany, U.K. and Switzerland are up; France, Spain, Italy and STOXX 600 are down
- Dollar index
- Crude Oil
- 10-yrs yield is at 1.720%, down from October 22 close of 1.768%;
- 30-years is at 2.230%, down from 2.251%
- 2-years yield is at 1.575%, down from 1.596%
- The 10-Year-&-2-Year spread is at 0.167 down from 0.172
- Is at 14.58 up from October 22 close of 14.46; above 5-day SMA 14.216
- Recent high was 20.38 on October 8; recent low was 13.31 on October 17
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, October 22 in mostly higher volume. Russell 2000 and NASDAQ Composite closed up. Russell 2000 traded in lower volume. The indices opened to the upside and then rose till mid-day before turning around and closing near the lows for the day.
The S&P 500 lost 0.4% on Tuesday in a news-heavy session. Company-specific news contributed to outsized stock moves, but overall gains in broader market had been nominal until a hiccup on the Brexit front dragged the major indices into negative territory. The benchmark index closed at session lows below the 3000 level.
U.S. Treasuries finished the session mixed. The 2-yr yield increased two basis points to 1.61%, and the 10-yr yield declined two basis points to 1.77%. The U.S. Dollar Index increased 0.2% to 97.47.
• Existing home sales decreased 2.2% month-over-month in September to a seasonally-adjusted annual rate of 5.38 million (Briefing.com consensus 5.52 mln) from a revised 5.50 million (from 5.49 million) in August. Total sales were 3.9% higher than the same period a year ago.
o The key takeaway from the report is that upward pressure on prices is likely to persist as inventory of unsold homes continues decreasing from last year’s levels.