Directional Bias For The Day:
- S&P Futures are higher;
- The odds are for an up day; elevated volatility – watch for break below 3187.50 for change of sentiments
- No key economic data due:
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3158.12, 3136.22 and 3115.70
- Critical resistance levels for S&P 500 are 3213.79, 3223.27 and 3233.13
- Key levels for E-mini futures: break above 3202.75, the high of 2:00 AM and break below 3187.50, the low of 4:30 AM
- On Friday at 4:00 PM, S&P futures (September 2020) closed at 3175.25 and the index closed at 3185.04 – a spread of about -9.75 points; futures closed at 3178.50 for the day; the fair value is -3.25
- Pre-NYSE session open, futures are higher – at 8:45 AM, S&P 500 futures were up by +21.25; Dow by +196 and NASDAQ by +101.50
Markets Around The World
- Markets in East closed mostly higher – Singapore was down
- European markets are higher
- Dollar index
- Crude Oil
- 10-yrs yield is at 0.661%, up from July 10 close of 0.633%;
- 30-years is at 1.361% up from 1.326%
- 2-years yield is at 0.153% down from 0.165%
- The 10-Year-&-2-Year spread is at 0.508 up from 0.468
- Is at 27.71; up +0.42 from July 10 close; above 5-day SMA;
- Recent high 44.44 on June 15; low 23.54 on June 5
- 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 Friday, July 10 in mostly lower volume. Dow Jones Transportation Average traded in lower volume. Indices mostly traded higher from start to finish. All but three – Technology, Healthcare and Telecom – S&P sectors closed up.
For the week, most majors U.S. indices closed higher in higher volume from the previous shortened week due to holiday. Russell 2000 closed lower. Market in Euorpe and Asia were mixed. Dollar and crude oild declined but gold advacned. Treasury yields fell.
The S&P 500 advanced 1.1% on Friday, as investors rotated back into growth/value stocks following a positive remdesivir update. The Dow Jones Industrial Average (+1.4%) and Russell 2000 (+1.7%) pulled ahead, while the Nasdaq Composite (+0.7%) underperformed but still closed at a record high. […]
The S&P 500 financials (+3.5%) and energy (+3.3%) sectors rose more than 3.0% amid expectations that these beaten-up sectors would outperform in a recovery. The health care sector (-0.2%) ironically closed lower while the information technology sector (unch) took a breather.[…]
U.S. Treasuries backed off from early morning highs following the remdesivir update, sending yields higher. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield increased three basis points to 0.63% after touching 0.57% in overnight action. The U.S. Dollar Index declined 0.1% to 96.63. WTI crude rose 2.1%, or $0.94, to $40.57/bbl.[…]
- The Producer Price Index for final demand, led by a 0.3% decline in prices for final demand services, decreased 0.2% m/m (Briefing.com consensus +0.4%) following a 0.4% increase in May. Excluding food and energy, the index for final demand decreased 0.3% m/m (Briefing.com consensus +0.1%) after declining 0.1% in May.
- The key takeaway from the report is that there are few, if any, inflation pressures at the producer level due to generally weak demand.