Directional Bias For The Day:
- S&P Futures are lower; moving lower since 9:30 PM on Sunday
- The odds are for a down day with good chance of sideways to up move from pre-open levels around 2895.00, with elevated volatility – watch for break below 2889.25 and break above 2911.25 for change of fortune
- No key economic data due:
Directional Bias Before Open:
- Critical support levels for S&P 500 are 2902.88, 2876.67 and 2847.65
- Critical resistance levels for S&P 500 are 2912.44, 2932.16 and 2954.86
- Key levels for E-mini futures: break above 2911.75, the high of 7:00 AM and break below 2889.75, the low of 8:30 AM
- On Friday at 4:00 PM, S&P futures (June 2020) closed at 2921.50 and the index closed at 2929.80 – a spread of about -8.25 points; futures closed at 2928.50 for the day; the fair value is -7.00
- Pre-NYSE session open, futures are lower – at 8:30 AM, S&P 500 futures were down by -33.00; Dow by -294 and NASDAQ by -50.00
Markets Around The World
- Markets in the East closed mixed – Shanghai, Mumbai and Seoul closed down; Hong Kong, Tokyo, Sydney and Singapore closed up
- European markets are lower
- Dollar index
- Crude Oil
- Sugar (Unch.)
- 10-yrs yield is at 0.680%, down from May 8 close of 0.682%;
- 30-years is at 1.390%, up from 1.386%
- 2-years yield is at 0.157% down from 0.161%
- The 10-Year-&-2-Year spread is at 0.523 up from 0.521
- Is at 29.97; up +1.99 from May 8 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 30.54 on April 28
- Sentiment: Risk-Off
The trend and patterns on various time frames for S&P 500:
|2-Hour (E-mini futures)||
|30-Minute (E-mini futures)||
|15-Minute (E-mini futures)||
For the week, Major U.S. indices closed higher in lower volume. All S&P sectors were up. Asia was mixed – Shanghai, Tokyo, Sydney were up and Honk Kong, Mumbai, Seoul and Singapore were down. Europe was mixed too – Germany, U.K., Switzerland and STOXX 600 were up and France, Spain and Italy were down. Dollar and Yen were up. Crude Oil, Gold, Copper and most commodities were up. Treasuries declined for the week.
U.S. stocks extended weekly gains on Friday, as the market saw reasons to stay positive on the economic outlook despite the dismal employment report for April. The S&P 500 (+1.7%), Dow Jones Industrial Average (+1.9%), and Nasdaq Composite (+1.6%) advanced more than 1.5%, while the Russell 2000 rose 3.6%.
The gains were broad, with all 11 S&P 500 sectors and all 30 Dow components closing in positive territory. Relative strength was found in the S&P 500 energy (+4.3%), industrials (+2.5%), materials (+2.4%), and consumer staples (+2.3%) sectors, while stocks in the health care sector (+0.5%) underperformed.[…]
U.S. Treasuries retreated throughout the day and closed near their session lows. The 2-yr yield increased three basis points to 0.14%, and the 10-yr yield increased five basis points to 0.68%. The U.S. Dollar Index declined 0.1% to 99.78. WTI crude futures rose 4.5%, or $1.06, to $24.71/bbl.[…]
• April nonfarm payrolls declined by 20.5 million (Briefing.com consensus -21.00 million). April private sector payrolls declined by 19.52 million (Briefing.com consensus -21.30 million). April unemployment rate was 14.7% (Briefing.com consensus 16.2%), versus 4.4% in March. April average hourly earnings were up 4.7% (Briefing.com consensus +0.4%) after increasing an upwardly revised 0.5% (from 0.4%) in March.
o The key takeaway from the report is that there is a lot more to it than meets the headline eye, most of which speaks to the depth of the country’s economic problems and the challenges in bouncing back from them in rapid-fire fashion.
• Wholesale inventories declined 0.8% in March (Briefing.com consensus -1.0%) after declining 0.7% in February.