Directional Bias For The Day:
- S&P Futures are higher;
- The odds are for a sideways to an up day – watch for break below 3072.50 for change of fortune
- Key economic data due:
- Final Service PMI ( 51.0 est.; prev. 51.0) at 9:45 AM
- ISM Non-Manufacturing PMI ( 53.5 est. ; prev. 52.6) at 10:00 AM
- JOLTS Opening ( 7.06M est.; prev. 7.05M) at 10:00 AM
- IBD/TIPP Economic Optimism ( 53.2 est.; prev. 52.6 )
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3074.90, 3066.72 and 3050.72
- Critical resistance levels for S&P 500 are 3084.02, 3089.78 and 3094.35
- Key levels for eMini futures: break above 3085.75, the high of 6:30 PM and break below 3077.00, the low of 8:00 PM
- On Monday, at 4:00 PM, S&P future closed at 3076.50 and the index closed at 3078.27 – a spread of about -1.75 points; futures closed at 3075.75 for the day; the fair value is +0.75
- Pre-NYSE session open, futures are higher – at 8:45 AM, S&P 500 futures were up by +7.25; Dow down by +86 and NASDAQ by +22.25
Markets Around The World
- Markets in the East closed mostly higher – Mumbai was down
- European markets are mostly higher – Switzerland is lower
- Dollar index
- Crude Oil
- 10-yrs yield is at 1.837%, up from November 4 close of 1.786%;
- 30-years is at 2.323%, up from 2.273%
- 2-years yield is at 1.617%, up from 1.581%
- The 10-Year-&-2-Year spread is at 0.220 up from 0.205
- Is at 12.96 up from November 4 close of 12.83; above 5-day SMA 12.726
- Recent high was 13.95 on October 31; recent low was 12.19 on October 31
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)||
Most major U.S. indices closed at all times highs on Monday, November 4 in mixed volume. Russell 2000 and Dow Jones Transportation Average did not make all time highs. S&P 500, Russell 2000 and NASDAQ Composite traded in lower volume.
The S&P 500 (+0.4%) and Nasdaq Composite (+0.6%) continued to set new highs on Monday, with the Dow Jones Industrial Average (+0.4%) finally breaking above its prior high from July following some positive-sounding trade comments. The Russell 2000 (+0.5%) kept pace with the large-cap indices.
The S&P 500 industrials (+1.2%), financials (+0.9%), and materials (+0.8%) sectors followed suit with gains that were also more than the benchmark index, as did the Dow Jones Transportation Average (+2.3%) and Philadelphia Semiconductor Index (+2.2%).
On the other hand, losses in the defensive-oriented utilities (-1.3%), real estate (-1.1%), consumer staples (-0.9%), and health care (-0.4%) sectors restrained further gains in the broader market.
U.S. Treasuries ended the session lower, as the risk-on trading sentiment in the stock market decreased demand for the safe-haven asset class. The 2-yr yield increased three basis points to 1.59%, and the 10-yr yield increased six basis points to 1.79%. The U.S. Dollar Index advanced 0.3% to 97.55.
Monday’s economic data was limited to the Factory Orders report for September, which declined 0.6% (Briefing.com consensus -0.5%) following an unrevised 0.1% decline in August.