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 3166.00 for change of sentiments
- No key economic data due:
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3149.43, 3136.22 and 3115.70
- Critical resistance levels for S&P 500 are 3181.17, 3214.36 and 3235.32
- Key levels for E-mini futures: break above 3166.00, the high of 2:30 AM and break below 3126.50, the low of 10:00 AM on July 10
- On Monday at 4:00 PM, S&P futures (September 2020) closed at 3148.00 and the index closed at 3155.22 – a spread of about -7.25 points; futures closed at 3148.25 for the day; the fair value is -0.25
- Pre-NYSE session open, futures are mixed – at 9:00 AM, S&P 500 futures were down by -9.00; Dow up by +14 and NASDAQ down by -80.00
Markets Around The World
- Markets in East closed lower
- European markets are lower
- Dollar index
- Crude Oil
- 10-yrs yield is at 0.614%, down from July 12 close of 0.640%;
- 30-years is at 1.299% down from 1.337%
- 2-years yield is at 0.153% up from 0.129%
- The 10-Year-&-2-Year spread is at 0.461 down from 0.511
- Is at 30.96; down -1.23 from July 13 close; above 5-day SMA;
- Recent high 44.44 on June 15; low 23.54 on June 5
- Sentiment: Risk-Off to 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 mostly lower on Monday, July 13 in mostly higher volume. Dow Jones Industrial Average closed higher and Dow Jones Transportation Average traded in lower volume. Indices gapped up at the open and reached high for the day by late morning. They all declined in afternoon and most made bearish candlestick formation including Bearish Engulfig, Dark Cloud Cover and Shooting Star.
The S&P 500 advanced as much as 1.6% on Monday, but a confluence of negative-sounding headlines caused noticeable profit taking in many of the technology-related stocks that left the benchmark index down 0.9% for the session. The Nasdaq Composite fell 2.1%, and Russell 2000 fell 1.3%. The Dow Jones Industrial Average (+0.04%) eked out a fractional gain.
The S&P 500 information technology (-2.1%), communication services (-2.0%), and consumer discretionary (-1.7%) sectors declined the most, while the health care (+0.5%), industrials (+0.4%), and financials (+0.3%) sectors showed relative strength.[…]
U.S. Treasuries ended the session near their flat lines. The 2-yr yield was flat at 0.16%, and the 10-yr yield increased one basis point to 0.64%. The U.S. Dollar Index decreased 0.1% to 96.54. WTI crude decreased 1.2%, or $0.49, to $40.08/bbl.[…]
- The Treasury Budget was earmarked with a gaping (and record) $864.1 billion deficit for the month of June. This budget data is not seasonally adjusted, so the June deficit cannot be compared to the May deficit of $398.7 billion other than to say both qualify as massive shortfalls in terms of government finances. The deficit in June 2019 was $8.5 billion.
- The key takeaway from the report is that the huge swing in the budget was a function of the tax filing deadline being extended, and government spending surging, due to stimulus measures employed in response to the COVID-19 impact..