Directional Bias For The Day:
- S&P Futures are lower;
- The odds are for a sideway to down day – watch for a break above 3247.25 for change of sentiments
- Key economic data due:
- Advanced GDP ( -32.9% vs. -34.5% est.; prev. -5.0%) at 8:30 AM
- Advanced GDP Price Index ( -1.8% vs. 0.0% est.; prev. 1.4% ) at 8:30 AM
- Unemployment Claims ( 1434K vs. 1440K est.; prev. 1416K) at 8:30 AM
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3216.17, 3204.88 and 3198.59
- Critical resistance levels for S&P 500 are 3240.08, 3264.74, and 3278.42
- Key levels for E-mini futures: break above 3247.25, the high of 2:00 AM and break below 3210.75, the low of 6:30 AM
- On Wednesday at 4:00 PM, S&P futures (September 2020) closed at 3250.25 and the index closed at 3258.44 – a spread of about -8.25 points; futures closed at 3252.50 for the day; the fair value is -2.25
- Pre-NYSE session open, futures are lower – at 8:15 AM, S&P 500 futures were down by -26.75; Dow by -236 and NASDAQ by -95.75
Markets Around The World
- Markets in East closed mostly lower – Sydney and Seoul closed up
- European markets are lower
- Dollar index
- Crude Oil
- 10-yrs yield closed at 0.579%, down from July 28 close of 0.581%;
- 30-years is at 1.242% up from 1.223%
- 2-years yield is at 0.125% down from 0.137%
- The 10-Year-&-2-Year spread is at 0.442 down from 0.444
- Is at 26.27; up +2.27 from July 29 close; above 5-day SMA;
- Recent high 33.67 on July 14; low 23.61 on July 21
- 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 Wednesday, July 29 in mostly lower volume. Russell 2000 traded in higher volume. All S&P sectors closed higher. For the past few days, major indices are moving mostly sideways.
The S&P 500 rallied 1.2% on Wednesday, as investors were pleased with the Fed’s latest policy directive and were unconcerned by the House Judiciary Committee’s antitrust hearing. The Nasdaq Composite rose 1.4%, and the Russell 2000 rose 2.1%. The Dow Jones Industrial Average underperformed with a 0.6% gain.
It was a steady and broad-based advance that lifted all 11 S&P 500 sectors into positive territory, including seven that rose at least 1.0%. The energy (+2.1%) and financials (+2.0%) sectors advanced the most with 2% gains, while the consumer staples sector lagged with a 0.2% gain.[…]
U.S. Treasuries edged higher after the release of the July FOMC statement, but the moves were minuscule. The 2-yr yield declined one basis point to 0.13%, and the 10-yr yield was flat at 0.58%. The U.S. Dollar Index fell another 0.4% to 93.35. WTI crude futures gained 0.6%, or $0.23, to $41.27/bbl.[…]
- Pending home sales increased 16.6% in June (Briefing.com consensus +17.0%) after surging an unrevised 44.3% in May.
- The advance international trade in goods deficit totaled $70.6 bln in June following a $75.3 bln deficit in May. Advance retail inventories declined 2.6% in June after decreasing 6.2% in May. Advance wholesale inventories declined 2.0% in June after decreasing 1.2% in May.
- The weekly MBA Mortgage Applications Index declined 0.8% following a 4.1% increase in the prior week.