Directional Bias For The Day:
- S&P Futures are higher;
- The odds are for an up day; watch for break below 3355.25 for change of fortune
- Key economic data due:
- Fed Chair Powell’s Humphrey-Hawkins Testimony
- JOLTS Job Openings ( est. 6.93M; prev 6.80 M) at 10;00 AM
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3351.96, 3334.29 and 3317.77
- Critical resistance levels for S&P 500 are 3363.64, 3375.20 and 3398.13
- Key levels for eMini futures: break above 3364.75, the high of 9:30 PM and break below 3355.25, the low of 4:00 AM
- On Monday, at 4:00 PM, S&P future (March 2020) closed at 3351.50 and the index closed at 3352.09 – a spread of about -0.50 points; futures closed at 3353.00 for the day; the fair value is -1.50
- Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +10.75; Dow by +117 and NASDAQ by +45.25
Markets Around The World
- Markets in the East closed higher – Tokyo was closed;
- European markets are higher
- Dollar index
- Crude Oil
- 10-yrs yield is at 1.587%, up from February 10 close of 1.547%;
- 30-years is at 2.047%, up from 2.020%
- 2-years yield is at 1.411%, up from 1.403%
- The 10-Year-&-2-Year spread is at 0.174 up from 0.144
- Is at 14.69 down -0.35 from February 10 close; below 5-day SMA
- Next high resistance is 21.46, the high of October 2, 2019; the low support is the 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 Monday, February 10 in mixed volume. Most indices made Bullish Engulfing candles with almost no upper and lower shadows. Only two S&P sectors – Energy and Materials – closed down.
The stock market finished strong on Monday, with shares of mega-cap technology companies propelling the S&P 500 (+0.7%) and Nasdaq Composite (+1.1%) to new closing records. The Dow Jones Industrial Average (+0.6%) and Russell 2000 (+0.7%) performed in-line with the S&P 500.
In turn, the consumer discretionary (+1.3%) and information technology (+1.4%) sectors were among the sector leaders, as well as the defensive-oriented real estate sector (+1.2%). The energy sector (-0.8%) continued to underperform, as WTI crude ($49.57/bbl, -0.78, -1.6%) fell back below $50/bbl amid lingering concerns about end-demand due to the coronavirus.
U.S. Treasuries posted modest gains, pushing yields lower across the curve. The 2-yr yield declined one basis point to 1.38%, and the 10-yr yield declined three basis points to 1.55%. The U.S. Dollar Index increased 0.2% to 98.85.
Investors did not receive any notable economic data on Monday.