Directional Bias For The Day:
- S&P Futures are lower; moving further lower since 7:30 AM; broke below a descending triangle on 15-minute chart with 100% extension target near 2862.00 level
- Odds are for a down day with volatility – watch for break above 2889.50 for change of fortune
- Key economic data due:
- PPI ( 0.2% vs. 0.2% est.) at 8:30 AM
- Core PPI ( 0.2% vs. 0.2% est.) at 8:30 AM
Markets Around The World
- Markets in the East closed mostly higher – Seoul and Singapore were down
- European markets are mostly down – Italy and Switzerland are up
- Currencies:
Up Down - Dollar index
- EUR/USD
- GBP/USD
- USD/JPY
- USD/CHF
- USD/CAD
- USD/INR
- AUD/USD
- NZD/USD
- Commodities:
Up Down - NatGas
- Gold
- Silver
- Palladium
- Coffee
- Cocoa
- Crude Oil
- Copper
- Platinum
- Sugar
- Cotton
- Bonds
- 10-yrs yield is at 3.228%, up from October 9 close of 3.208%;
- 30-years is at 3.390%, up from 3.370%
- 2-years yield is at 2.910%, up from 2.885%
- The 10-Year-&-2-Year spread is at 0.319, down from 0.323
Key Levels:
- Critical support levels for S&P 500 are 2874.27, 2862.08 and 2854.03
- Critical resistance levels for S&P 500 are 2894.83, 2903.04 and 2909.40
- Key levels for eMini futures: break above 2890.50, the high of 3:00 AM and break below 2879.00, the low of 9:30 AM on Tuesday
Pre-Open
- On Tuesday, at 4:00 PM, S&P future (December contract) closed at 2885.75 and the index closed at 2880.34 – a spread of about +5.25 points; futures closed at 2888.25 for the day; the fair value is -2.50
- Pre-NYSE session open, futures price action is to the downside – at 8:15 AM, S&P 500 futures were down -5.75; Dow by -29.00; and NASDAQ by -36.25
Directional Bias Before Open
- Weekly: Uptrend Under Pressure
- Daily: Uptrend Under Pressure
- 120-Min: Down
- 30-Min: Down-Side
- 15-Min: Down-Side
- 6-Min: Side
The trend and patterns on various time frames for S&P 500 are:
Monthly |
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Weekly: |
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Daily |
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2-Hour (e-mini future) |
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30-Minute (e-mini future) |
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15-Minute (e-mini future) |
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Previous Session
Major U.S. indices closed mostly lower on Tuesday October 9 in mixed volume. NASDAQ Composite was higher. Dow Jones Industrial Average and Dow Jones Transportation Average traded in higher volume. Five S&P sectors – Energy, Technology, Utility, Healthcare and Real Estate – closed were higher for the day.
From Briefing.com:
U.S. stocks waffled on Tuesday amid concerns about growth, rising interest rates, and the impending arrival of Hurricane Michael in Florida’s panhandle. The broader market seemed reluctant to make a decisive move in any direction, as the S&P 500 index crossed back and forth across the unchanged line numerous times during the trading session.
- S&P 500 Sectors
Sector | Daily Trend | Relative Strength (Last Month) | Relative Strength (Current Month) |
Consumer Discretionary | Down (Break below trading zone – 114.80) | XLY | SPY |
Consumer Staples | Side (Break Down Support = 53.49) | SPY | XLP |
Energy | Up (From Side) | SPY | XLE |
Materials | Side | SPY | SPY |
Industrials | Up-Side | XLI | XLI |
Finance | Side | SPY | XLF |
Technology | Up (Under Pressure) | XLK | SPY |
Utility | Up-Side | SPY | XLU |
Heath Care | Up (under Pressure) | XLV | XLV |
Real Estate | Down | SPY | SPY |
Telecom | Side | XTL | SPY |
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