Directional Bias For The Day:
- S&P Futures are higher; moving up since 1:00 AM on Friday from 2755.25 and after making a Bullish Divergence on 15-minute chart
- A symmetrical triangle is emerging on 15-minutes chart; a break below it will be short term bearish
- The odds are for an up day – watch for break below 2842.25 for change of fortune
- No key economic data due:
Directional Bias Before Open:
- Critical support levels for S&P 500 are 2842.71, 2717.80 and 2791.76
- Critical resistance levels for S&P 500 are 2869.98, 2879.22 and 2901.54
- Key levels for eMini futures: break above 2865.00, the high of 1:30 AM break below 2842.25, the low of 3:00 AM
- On Friday at 4:00 PM, S&P future (June 2020) closed at 2828.00 and the index closed at 2836.74 – a spread of about -8.75 points; futures closed at 2829.50 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 +27.50; Dow by +235 and NASDAQ by +102.00
Markets Around The World
- Markets in the East closed up
- European markets are higher
- Dollar index
- Crude Oil
- 10-yrs yield is at 0.627%, up from April 24 close of 0.596%;
- 30-years is at 1.204%, up from 1.177%
- 2-years yield is at 0.220% down from 0.224%
- The 10-Year-&-2-Year spread is at 0.385 down from 0.379
- Is at 35.33 down -0.60 from April 24 close; below 5-day SMA;
- Down from all time high of 85.47 on March 18; recent high 47.77 on April 21, recent low 37.31 on April 14
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)||
For the week, major U.S. indices mostly closed lower in lower volume. Russell 2000 closed up for the week. Indices made lows early in the week and then traded higher. Most made long lower shadow and small upper shadows. Few made Doji like candle and few closed above their open.
Only two S&P sectors – Energy and Telecom – closed up for the week. Most international exchanged closed lower for the week, Switzerland was up. Most commodities were down but Gold was up. U.S. Treasuries rallied and yields dropped.
The S&P 500 increased 1.4% on Friday, wrapping up a negative week on a positive note amid a resurgence in buyers during the afternoon. The Dow Jones Industrial Average rose 1.1%, the Nasdaq Composite rose 1.7%, and the Russell 2000 rose 1.6%.[…]
The information technology sector (+2.1%) led the advance, followed by the materials sector (+1.6%). The energy sector (+0.2%) underperformed today.[…]
U.S. Treasuries ended the session with modest gains, pushing yields slightly lower. The 2-yr yield and 10-yr yield both declined two basis points each to 0.20% and 0.60%, respectively. The U.S. Dollar Index declined 0.2% to 100.24. On a related note, the Fed will reduce its Treasury purchases to $10 billion/day next week from $15 billion/day this week.[…]
• Durable goods orders declined 14.4% m/m in March (Briefing.com consensus -10.0%). Excluding transportation, durable goods orders declined 0.2% (Briefing.com consensus -4.0%).
o The key takeaway from the report is that business spending was up slightly in March, yet that condition isn’t expected to persist into April when COVID-19 shutdown measures hit in full force and corporate capex cut announcements accelerated.
• The final reading for the University of Michigan Index of Consumer Sentiment for March was revised up to 71.8 (Briefing.com consensus 66.5) from the preliminary reading of 71.0. The final reading for March was 89.1.
o The key takeaway from the report is that the downturn in the Expectations Index has not been as severe as the downturn in the Current Economic Conditions Index, which suggests consumers are clearly concerned about the outlook but still clinging to some rebound hope with anticipated reopenings of state economies.