Directional Bias For The Day:
- S&P Futures are lower and volatile; off the higher around 2500.00 reached in European session
- The odds are for a sideways day with extreme volatility – watch for break below 2387.50 and break above 2498.00 for clarity
- Key economic data due:
- Durable Goods Orders ( 1.2% vs. -1.0% est.; prev. -0.2% ) at 8:30 AM
- Core Durable Goods Orders (-0.6% vs. -0.4% est. ; prev. 0.8% ) at 8:30 AM
- HPI ( est. .4%; prev. 0.6% ) at 9:00 AM
Directional Bias Before Open:
- Critical support levels for S&P 500 are 2414.11, 2360.25 and 2344.44
- Critical resistance levels for S&P 500 are 2449.71, 2466.97 and 2529.56
- Key levels for eMini futures: break above 2498.00, the high of 5:30 AM and break below 2387.50, the low of 7:30 AM
- On Tuesday at 4:00 PM, S&P future (June 2020) closed at 2433.00 and the index closed at 2447.33 – a spread of about -14.25 points; futures closed at 2438.00 for the day; the fair value is -5.00
- Pre-NYSE session open, futures are lower – at 8:30 AM, S&P 500 futures were down by -22.25; Dow by -16 and NASDAQ by -63.50
Markets Around The World
- Markets in the East closed up
- European markets are mostly higher – Germany and Italy are lower
- Dollar index
- Crude Oil
- 10-yrs yield is at 0.850%, up from March 24 close of 0.816%;
- 30-years is at 1.405%, up from 1.369%
- 2-years yield is at 0.359% up from 0.371%
- The 10-Year-&-2-Year spread is at 0.491 up from 0.445
- Is at 65.76 up +4.09 from March 24 close; below 5-day SMA;
- Down from all time high of 85.47 on March 18
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)||
U.S. indices gapped up at the open and then mostly stayed above the open. Dow Jones Industrial Average had fifth highest percentage gains, however, higher gains happened during 30’s depression.
The S&P 500 surged 9.4% on Tuesday, as news that the elusive fiscal stimulus package was close to being agreed to in the Senate spurred a broad-based rebound. The Dow Jones Industrial Average climbed 11.4%, the Nasdaq Composite climbed 8.1%, and the Russell 2000 climbed 9.4%.
All 11 S&P 500 sectors posted strong gains, especially the energy (+16.3%), financials (+12.8%), and industrials (+12.8%) sectors. The consumer staples sector (+4.8%) was the lone sector to advance less than 5.0%.
U.S. Treasuries retreated for most of the day but did close off session lows. The 2-yr yield rose eight basis points to 0.37%, and the 10-yr yield rose five basis points to 0.82%. The U.S. Dollar Index declined 0.5% to 101.96. Gold futures rose 6.0% to $1659.80/ozt to extend its weekly advance following some positive-minded commentary out of Goldman Sachs.
• The key takeaway from the report is that it shows new home demand was strong in February, but that was before everything changed this month in the U.S. with the coronavirus situation, which is expected to severely weigh on home buying interest in the near term.