Directional Bias For The Day:
- S&P Futures are higher but NASDAQ futures are down
- The odds are for up day; good chance of moving sideways to down from pre-open levels around 3025.00; elevated volatility – watch for break below 3004.00
- Key economic data due:
- Richmond Manufacturing Index ( -40 est.; prev. -53) at 10:00 AM
- Beige Book at 2:00 PM
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3015.57, 2999.98 and 2988.17
- Critical resistance levels for S&P 500 are 3021.72, 3030.09 and 3059.64
- Key levels for E-mini futures: break above 3031.75, the high of 5:30 AM and break below 3004.00, the low of 3:00 AM
- On Tuesday at 4:00 PM, S&P futures (June 2020) closed at 2987.75 and the index closed at 2991.77 – a spread of about -4.00 points; futures closed at 2994.50 for the day; the fair value is -6.75
- Pre-NYSE session open, futures are mixed – at 8:45 AM, S&P 500 futures were up by +25.00; Dow up by +304 and NASDAQ down by -16.50
Markets Around The World
- Markets in the East closed mixed – Shanghai, Hong Kong, Sydney and Singapore closed down; Tokyo, Mumbai and Seoul were up
- European markets are mostly higher – Switzerland is down
- Dollar index
- Crude Oil
- 10-yrs yield is at 0.705%, up from May 26 close of 0.698%;
- 30-years is at 1.455%, up from 1.439%
- 2-years yield is at 0.176% up from 0.179%
- The 10-Year-&-2-Year spread is at 0.529 up from 0.519
- Is at 27.19; down -0.82 from May 26 close; below 5-day SMA;
- Recent 39.28 on May 14; low 24.92 on March 3
- Sentiment: Risk-Neutral
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)||
Major U.S. indices closed higher on Tuesday, May 26 in higher volume. Indices gapped up at the open but some traded down in the afternoon. NASDAQ Composite, S&P 500, NYSE Composite and Wilshire 5000 Total Market Index closed near day’s lows. All S&P sectors closed higher.
The S&P 500 rallied as much as 2.2% on Tuesday on a familiar reopening trade, but some weakness into the close left the benchmark index up 1.2% for the session. The Dow Jones Industrial Average (+2.2%), Russell 2000 (+2.8%), and S&P MidCap 400 (+3.4%) outperformed, while the Nasdaq Composite increased just 0.2%.[…]
The reopening trade was still manifested in the leadership from the financials (+5.0%) and industrials (+4.2%) sectors, and in the higher oil prices ($34.36/bbl, +$1.11, +3.3%). The heavily-weighted information technology (-0.1%) and health care (-0.2%) sectors, however, slipped into negative territory.[…]
The U.S. Treasury curve continued to experience curve-steepening activity amid the market’s upbeat economic outlook. The 2-yr yield was unchanged at 0.17%, while the 10-yr yield increased four basis points to 0.70%. The U.S. Dollar Index declined 0.9% to 98.97.[…]
• New home sales increased 0.6% m/m to a seasonally adjusted annual rate of 623,000 (Briefing.com consensus 485,000) from a downwardly revised 619,000 (from 627,000). On a yr/yr basis, new home sales were down 6.2%.
o The key takeaway from the report is that the strength in sales was fortified by lower selling prices.
• The Conference Board’s Consumer Confidence Index checked in at 86.6 for May (Briefing.com consensus 88.5) versus a downwardly revised 85.7 (from 86.9) for April.
o The key takeaway from the report is that attitudes about the short-term outlook increased some, reflecting some budding optimism about reopening efforts.
• The FHFA Housing Price Index for May increased 0.1% following an upwardly revised 0.8% in April (from +0.7%).
• The S&P Case-Shiller Home Price Index increased 3.9% yr/yr in March (Briefing.com consensus 3.8%) following a 3.5% increase in February.