Directional Bias For The Day:
- S&P Futures are higher;
- Non-Farm Payroll day
- The odds are for an up day – watch for reaction following payroll report; watch break below 3264.25 for change of fortune
- Key economic data due:
- Non-Farm Employment Change ( 162K est.; prev. 266K ) at 8:30 AM
- Average Hourly Earnings ( 0.3% est. ; prev. 0.2%) at 8:30 AM
- Unemployment Rate ( 3.5% est.; prev. 3.5% ) at 8:30 AM
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3275.12, 3269.74 and 3263.67
- Critical resistance levels for S&P 500 are 3278.96, 3283.23 and 3290.87
- Key levels for eMini futures: break above 3286.75, the high of 6:00 AM and break below 3279.50, the low of 3:30 AM
- On Thursday, at 4:00 PM, S&P future (March 2020) closed at 3275.50 and the index closed at 3274.70 – a spread of about +0.75 points; futures closed at 3276.00 for the day; the fair value is -0.50
- Pre-NYSE session open, futures are higher – at 6:45 AM, S&P 500 futures were up by +9.50; Dow by +65 and NASDAQ by +39.50
Markets Around The World
- Markets in the East closed mostly higher – Shanghai was down
- European markets are higher
- Dollar index
- Crude Oil
- 10-yrs yield closed at 1.858%, down from January 8 close of 1.874%;
- 30-years is at 2.330%, down from 2.358%
- 2-years yield is at 1.584%, up from 1.581%
- The 10-Year-&-2-Year spread is at 0.274 down from 0.293
- Is at 12.41 down from January 9 close of 12.54; below 5-day SMA
- Recent high was 16.39 on January 6; recent low was 11.72 on December 26
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 Thursday, January 9 in lower volume. Major indices continue to breakout from few day’s consolidation. Most major indices except Dow Jones Transportation Average and Russell 2000 made all time highs. On one S&P sectors – Real Estate – closed down.
The S&P 500 rose 0.7% and closed at a record high on Thursday, as the market extended Wednesday’s relief rally amid gains across all 11 S&P 500 sectors. The Dow Jones Industrial Average (+0.7%) and Nasdaq Composite (+0.8%) also closed at record highs, while the Russell 2000 increased just 0.1%.
U.S. Treasuries finished the session slightly higher. The 2-yr yield declined one basis point to 1.57%, and the 10-yr yield declined two basis points to 1.86%. The U.S. Dollar Index increased 0.1% to 97.44. WTI crude declined 0.1% to $59.54/bbl.
• Initial jobless claims for the week ending January 4 decreased by 9,000 to 214,000 (Briefing.com consensus 225,000). Continuing claims for the week ending December 28 increased by 75,000 to 1.803 million.
o The key takeaway from the report is that initial claims have settled back down at lower levels, which reflect ongoing tightness in the labor market.