Directional Bias For The Day:
- S&P Futures are higher at 9:00 AM; the futures up 20 points since 4:45 AM after moving sideways from 8:15 PM
- The odds are for an up day with volatility and a good chance of moving sideways to down from the pre-open levels around 4245.00 – watch for a break below 4213.00 for a change of sentiments
- The key economic data report due during the day:
- PPI ( -0.5% vs.; prev. 0.2% est.; prev. 1.2%) at 8:30 AM
- Core PPI ( 0.2% vs. 0.4% est.; prev. 0.4%) at 8:30 AM
- Unemployment Claims ( 262K vs. 264K Est.,; prev. 248K) at 8:30 AM
Directional Bias Before Open:
- Critical support levels for S&P 500 are 4211.03, 4193.69, and 4177.26
- Critical resistance levels for S&P 500 are 4257.69, 4270.43, and 4281.54
- Key levels for E-mini futures: break above 4245.50, the high at 8:30 AM and a break below 4213.00, the high at 4:45 AM
- On Wednesday at 4:00 PM, S&P futures (September 2022) closed at 4210.50, and the index closed at 4210.24 – a spread of about +0.25 points; the futures closed at 4210.0; the fair value is -0.50
- Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +30.25, Dow by +252; and NASDAQ by +96.75
Markets Around The World
- Markets in the East closed lower – Tokyo was closed for trading
- European markets are mostly higher – the UK is down
- Currencies (Compared to two weeks ago):
- Commodities (Compared to two weeks ago):
- Energy futures are lower
- Precious metals are higher
- Industrial metals are higher
- Soft commodities are mostly higher
- Treasuries (Compared to two weeks ago)
- The 10-year yield closed at 2.786%, up +5.2 basis points from two weeks ago;
- The 30-year is at 3.042%, up +4.0 basis points;
- The 2-year yield is at 3.210%, up +18.6 basis points;
- The 10-Year-&-2-Year spread is at -0.424, down from -0290
- The 30-Year-&-10-Year spread is at 0.256, down from 0.268
- At 19.83 @ 8:45 AM; up from the last close; below the 5-day SMA;
- Recent high = 29.06 on July 13; low = 18.45 on April 4
- Sentiment: Risk-On
The trend and patterns in 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, August 10, in higher volume. The major indices gapped up at the open and then drifted higher for the rest of the day. All S&P sectors closed higher, and the US Treasury Yields were mixed.
The three main indices saw some up and down price action but ultimately closed with sizable gains. The Nasdaq and S&P 500, which breached the 4,200 level, closed just below session highs.[…]
The mega caps, growth stocks, and cyclical sectors led the way after those areas sold off heavily in recent sessions. The Vanguard Mega Cap Growth ETF (MGK), up 2.9%, closed ahead of the broader market. The Russell 3000 Growth Index (+2.7%) closed ahead of the Russell 3000 Value Index (+1.9%). The PHLX Semiconductor Index (SOX) closed up 4.3%.
S&P 500 sector performance reflected a risk-on mindset. The materials (+2.9%), consumer discretionary (+2.9%), communication services (+2.8%), and information technology (+2.8%) sectors topped the leaderboard.
The buying was broad-based with all 11 S&P 500 sectors closing in the green with gains ranging from 0.5% (utilities) to 2.9% (materials). The Invesco S&P 500 Equal Weight ETF (RSP) jumped 2.1% on the day.[…]
Advancer led decliners by a roughly 6-to-1 margin at the NYSE and a less than 3-to-1 margin at the Nasdaq.[…]
The 2-yr note yield, which was at 3.27% just before the release, dropped to 3.08% in its wake before settling the day at 3.19%. The 10-yr note yield, which was at 2.80% just before the release, fell to 2.69% in its wake but gave back just about everything and settled at 2.79%.[…]
- Total CPI was unchanged month-over-month (Briefing.com consensus +0.2%), leaving it up 8.5% year-over-year versus 9.1% in June. Core CPI, which excludes food and energy, was up 0.3% month-over-month (Briefing.com consensus +0.5%), leaving it up 5.9% year-over-year versus 5.9% in June.
- Weekly MBA Mortgage Applications Index showed 0.2% increase versus the prior increase of 1.2%.
- June Wholesale Inventories rose 1.8% (Briefing.com consensus 1.9%) versus the prior revised increase of 1.9% (from 1.8%).
Dow Jones Industrial Average: -8.3% YTD
S&P 400: -9.9% YTD
S&P 500: -11.7% YTD
Russell 2000: -12.3% YTD
Nasdaq Composite: -17.8% YTD
- Europe: DAX +1.2%, FTSE +0.2%, CAC +0.5%
- Asia: Nikkei -0.7%, Hang Seng -2.0%, Shanghai -0.5%
- Crude Oil +1.48 @ 91.85
- Nat Gas +0.40 @ 8.23
- Gold -3.70 @ 1807.50
- Silver +0.11 @ 20.58
- Copper +0.06 @ 3.64
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