Directional Bias For The Day:
- S&P Futures are higher;
- The odds are for a sideways day moving within a range – watch for a break above 322.25 and break below 3190.25 for change of sentiments
- No key economic data due:
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3217.43, 3205.65 and 3198.59
- Critical resistance levels for S&P 500 are 3233.529, 3238.28 and 3253.58
- Key levels for E-mini futures: break above 3222.25, the high of 7:30 PM on July 19 and break below 3190.25, the low of 3:00 AM
- On Friday at 4:00 PM, S&P futures (September 2020) closed at 3216.50 and the index closed at 3224.73 – a spread of about -8.25 points; futures closed at 3214.00 for the day; the fair value is +2.50
- Pre-NYSE session open, futures are mixed – at 8:30 AM, S&P 500 futures were down by -6.25; Dow down by -50 and NASDAQ up by +24.00
Markets Around The World
- Markets in East closed mixed
- European markets are mostly higher
- Currencies: U.S. Dollar is up
- Commodities: Crude Oil is down; gold is up
- Bond: Treasury yields are down
- Is at 26.30; up +0.62 from July 17 close; below 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 higher on Friday, July 17 in nixed volume. Dow Jones Industrial Average closed lower. DJIA and S&P 500 traded in higher volume. Day’s price action was small and most indices made Doji and similar indecisive candlestick formations.
For the week, major U.S. indices closed mostly higher in mostly higher volume. NASDAQ Composite closed down in lower trading. Markets in Europe were up and in Asian were mostly up. US Dollar was down, crude oil and gold were up. 10-year treasury yields were down nut 30-year were up. Only one S&P sector – Technology – was down for the week.
The S&P 500 eked out a 0.3% gain on Friday in a lackluster session led by the defensive-oriented sectors. The Nasdaq Composite (+0.3%) and Russell 2000 (+0.4%) rose comparably to the benchmark index, while the Dow Jones Industrial Average declined 0.2% amid relative weakness in financial and energy companies. […]
The lower consumer sentiment reading was closely linked with the resurgence in coronavirus cases, but investors remained willing to stay in the market. Many opted for a defensive stance that lifted the S&P 500 utilities (+2.3%), real estate (+1.4%), and health care (+1.4%) sectors into the leadership spots at the expense of the cyclical energy (-1.5%) and financials (-0.8%) sectors.[…]
U.S. Treasuries ended the session little changed. The 2-yr yield declined one basis point to 0.14%, and the 10-yr yield increased two basis points to 0.63%. The U.S. Dollar Index declined 0.4% to 95.95. WTI crude futures declined 0.5%, or $0.20, to $40.56/bbl.[…]
- Total housing starts increased 17.3% m/m in June to a seasonally adjusted annual rate of 1.186 million units (Briefing.com consensus 1.180 million). Building permits rose 2.1% to 1.241 million (Briefing.com consensus 1.290 million).
- The key takeaway from the report is that single-unit permits (+11.8%) and starts (+17.2%) were both strong, which is good to see for a housing market that is short on supply.
- The preliminary University of Michigan Index of Consumer Sentiment for July dropped to 73.2 (Briefing.com consensus 77.6) from the final reading of 78.1 for June. The July reading, which is just 1.4 points above the April low, slumped in conjunction with the renewed surge in coronavirus cases and moves by some states to pause or roll back reopening efforts.
- The key takeaway from the report is the acknowledgment that sentiment is destined to sink further, creating a risk for a longer recession, if Congress fails to come through with another aggressive fiscal policy response that focuses on financial relief for households and state and local governments.