Directional Bias For The Day:
- S&P Futures are essentially moving sideways for the past few days
- The odds are for a sideways day to down; watch for break above 3088.00 and below 3072.50 for clarity
- Key economic data due:
- CPI (0.4% vs. 0.3% est.; prev. 0.0%) at 8:30 AM
- Core CPI (0.2% vs. 0.2% est.; prev. 0.1%) at 8:30 AM
- Fed Chair Powell Testimony to Congress
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3084.73, 3075.82 and 3065.89
- Critical resistance levels for S&P 500 are 3092.82, 3098.94 and 3102.61
- Key levels for eMini futures: break above 3088.00, the high of 3:00 AM and break below 3074.50, the low of 9:30 AM on November 11
- On Tuesday, at 4:00 PM, S&P future closed at 3091.25 and the index closed at 3091.84 – a spread of about -0.50 points; futures closed at 3092.00 for the day; the fair value is -0.75
- Pre-NYSE session open, futures are lower – at 9:00 AM, S&P 500 futures were down by -8.75; Dow by -91 and NASDAQ by -26.50
Markets Around The World
- Markets in the East closed lower
- European markets are lower
- Dollar index
- Crude Oil
- 10-yrs yield closed at 1.909%, down from November 11 close of 1.943%;
- 30-years is at 2.384%, down from 2.427%
- 2-years yield is at 1.580%, down from 1.671%
- The 10-Year-&-2-Year spread is at 0.251down from 0.272
- Is at 13.37 up from November 12 close of 12.68; above 5-day SMA
- Recent high was 13.95 on October 31; recent low was 12.07 on November 8
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 Tuesday, November 12 in higher volume. Dow Jones Industrial Average closed unchanged, Dow Jones Transportation Average and NYSE Composite closed lower. The day’s price range was small. Indices opened up and the made days high in early trading and then mostly traded sideways to down. before closing near the open rnage.
The S&P 500 clipped the 3100 level for the first time on Tuesday, but the record run lost some steam to leave the benchmark index up just 0.2% and below 3100 on a closing basis. The Nasdaq Composite (+0.3%) closed at a record high, while the Dow Jones Industrial Average (unch) and Russell 2000 (unch) finished unchanged.
It was still a generally positive day for the stock market, which has been resilient to any pullback effort this month. Relative strength was found in the S&P 500 health care (+0.6%) and materials (+0.4%) sectors, while relative weakness rested in the real estate (-0.8%) and energy (-0.6%) sectors.
The Treasury market reopened for trading after being closed for Veterans Day yesterday. An uptick in demand pushed the 2-yr yield down one basis point to 1.65% and the 10-yr yield down two basis points to 1.91%. The U.S. Dollar Index increased 0.2% to 98.34. WTI crude was unchanged at $56.85/bbl.
Tuesday’s economic data was limited to the Small Business Optimism Index for October, which improved to 102.4 from 101.8 in September. On Wednesday, investors will receive the Consumer Price Index for October, the Treasury Budget for October, and the weekly MBA Mortgage Applications Index.