Directional Bias For The Day:
- S&P Futures are lower
- The odds are for a down to sideways day; elevated volatility – watch for break above 3167.50 for change of sentiments
- No key economic data due:
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3155.29, 3124.52 and 3114.61
- Critical resistance levels for S&P 500 are 3182.59, 3189.64 and 3213.79
- Key levels for E-mini futures: break above 3167.50, the high of 1:00 AM and break below 3138.25, the low of 6:00 AM
- On Monday at 4:00 PM, S&P futures (September 2020) closed at 3169.25 and the index closed at 3179.72 – a spread of about -10.50 points; futures closed at 3172.00 for the day; the fair value is -2.75
- Pre-NYSE session open, futures are lower – at 8:30 AM, S&P 500 futures were dwon by -23.25; Dow by -229 and NASDAQ by -33.00
Markets Around The World
- Markets in East closed mostly lower – Shanghai and Mumbai closed up
- European markets are lower
- Dollar index
- Crude Oil
- 10-yrs yield closed at 0.684%, up from July 2 close of 0.669%;
- 30-years is at 1.443% up from 1.429%
- 2-years yield is at 0.161% up from 0.156%
- The 10-Year-&-2-Year spread is at 0.523 up from 0.513
- Is at 28.14; up +0.2 from July 6 close; at/below 5-day SMA;
- Recent high 44.44 on June 15; low 23.54 on June 5
- 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 Monday, July 6 in mostly lower volume. NASDAQ Composite traded in higher volume. Most indices are breaking above congestion area. All but one – Utilities – S&P sectors closed up.
The S&P 500 rose 1.6% on Monday in a bullish start to the week, but it was the Nasdaq Composite (+2.2%) and Dow Jones Industrial Average (+1.8%) that gained the advantage today. The Nasdaq closed at another record high, while the Russell 2000 underperformed the large-cap indices with a 0.8% gain.
Ten of the 11 S&P 500 sectors finished in positive territory, including the consumer discretionary (+3.2%), communication services (+2.2%), financials (+2.0%), and information technology (+1.8%) sectors atop the standings. The utilities sector (-1.3%) was the lone holdout with a 1.3% decline.[…]
U.S. Treasuries finished slightly lower in a tight-ranged session. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield increased two basis points to 0.68%. The U.S. Dollar Index declined 0.4% to 96.75. WTI crude declined 0.2% to $40.51/bbl.[…]
- The ISM Non-Manufacturing Index for June increased to 57.1% (Briefing.com consensus 49.0%) from 45.4% in May. A reading above 50.0% connotes an expansion in activity. June represented the first month of expanding activity since March.
- Survey responses reflect changes, if any, in the current month compared to the previous month. The key takeaway, then, is that the June report can’t be taken at face value as a “strong” report so much as it can be taken as a report showing stronger activity relative to the depressed activity in May.