Directional Bias For The Day:
- S&P Futures are lower
- The odds are for a down day with elevated volatility; good chance of sideways to down move from pre-open levels around 2975.00 – watch for break above 2992.75 for change of sentiments
- No key economic data due:
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3023.93, 2999.49 and 2969.75
- Critical resistance levels for S&P 500 are 3090.41, 3123.53 and 3130.94
- Key levels for E-mini futures: break above 3081.25, the high of 11:00 AM on Thursday and break below 3048.50, the low of 3:00 AM
- On Friday at 4:00 PM, S&P futures (June 2020) closed at 3039.00 and the index closed at 3041.31. – a spread of about -2.25 points; futures closed at 3023.75 for the day; the fair value is +5.25
- Pre-NYSE session open, futures are lower – at 8:30 AM, S&P 500 futures were down by -60.00; Dow by -603 and NASDAQ by -123.00
Markets Around The World
- Markets in the East closed lower
- European markets are mostly lower – Switzerland is up
- Dollar index
- Crude Oil
- 10-yrs yield is at 0.672%, down from June 12 close of 0.699;
- 30-years is at 1.410%, down from 1.450%
- 2-years yield is at 0.185% down from 0.205%
- The 10-Year-&-2-Year spread is at 0.487 down from 0.494
- Is at 41.77; up +5.68 from June 12 close; above 5-day SMA;
- Recent high 47.77 on April 21; low 23.54 on June 5
- 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 lower on mostly higher volume. Dow Jones Transportation Average traded in lower volume. All S&P sectors closed lower. Asian and European markets also closed lower. Dollar and Yen gained. Crude oil and natural were down but gold, silver and copper were up. Treasury yields declined for the week.
The S&P 500 gained 1.3% on Friday to reclaim some of yesterday’s sharp decline, although it was up as much as 2.9% early in the session. The Dow Jones Industrial Average (+1.9%), Nasdaq Composite (+1.0%), and Russell 2000 (+2.3%) also bounced back but closed off session highs.[…]
The S&P 500 sectors were able to finish mostly higher, with cyclical sectors assuming the leadership. The financials (+3.0%), energy (+2.7%), and industrials (+2.0%) sectors rose at least 2.0%, but it was the real estate sector (+3.2%) that advanced the most. The utilities (-0.2%) and consumer staples (-0.2%) sectors closed lower.[…]
U.S. Treasuries finished on a lower note, pushing yields higher across the curve. The 2-yr yield increased two basis points to 0.18%, and the 10-yr yield increased five basis points to 0.70%. The U.S. Dollar Index increased 0.4% to 97.11. WTI crude declined 0.5%, or $0.17, to $36.24/bbl.[…]
• The preliminary University of Michigan Index of Consumer Sentiment for June showed an improvement to 78.9 (Briefing.com consensus 75.8) from the final reading of 72.3 for May.
o The key takeaway from the report is that the uptick was driven by renewed gains in employment and an expectation for a decline in the unemployment rate; however, most consumers were not anticipating the reestablishment of favorable financial conditions anytime soon.
• Import prices increased 1.0% in May, and prices, excluding oil, increased 0.1%. Export prices increased 0.5% in May, and prices, excluding agriculture, increased 0.6%.