Directional Bias For The Day:
- S&P Futures are higher;
- The odds are for an up day with a good chance of sideways move from pre-open levels around 3350.00 – watch for a break above 3343.50 for change of sentiments
- Key economic data due:
- JOLTS Job Openings ( 5.30M est.; prev. 5.40M) at 10:00 AM
Directional Bias Before Open:
- Critical support levels for S&P 500 are 3337.34, 3328.72, and 3318.14
- Critical resistance levels for S&P 500 are 3360.76, 3375.05, and 3386.69
- Key levels for E-mini futures: break above 3355.50, the high of 1:30 AM and break below 3343.50, the low of 4:00 AM
- On Friday at 4:00 PM, S&P futures (September 2020) closed at 3344.75 and the index closed at 3351.28 – a spread of about -6.75 points; futures closed at 3344.75 for the day; the fair value is 0.00
- Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +1.75; Dow by +80 and NASDAQ by +4.25
Markets Around The World
- Markets in East closed mostly higher – Hong Kong was down; Tokyo and Singapore were closed for trading;
- European markets are higher
- Dollar index
- Crude Oil
- 10-yrs yield is at 0.551%, down from August 7 close of 0.562%;
- 30-years is at 1.227% down from 1.229%
- 2-years yield is at 0.117% down from 0.119%
- The 10-Year-&-2-Year spread is at 0.434 down from 0.443
- Is at 22.76; up +0.55 from August 7 close; at/below 5-day SMA;
- Recent high 33.67 on July 14; low 20.97 on August 6
- 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 mostly higher on Friday, August 7 in mostly higher volume. NASDAQ Composite closed lower and Dow Jones Transportation traded in lower volume. All S&P sectors except Technology closed higher.
For the week, major U.S. indices closed higher in mostly lower volume. DTRAN traded in higher volume. All S&P sectors closed higher for the week. Most Asian and European exchanges closed higher. Dollar Index edged up. Crude oil, gold, and silver also closed up but copper was down. Treasury yields gained.
The S&P 500 eked out a 0.1% gain on Friday to close out a strong week for equities. The Russell 2000 outperformed with a 1.6% gain, as a better-than-feared July employment report contributed to the outperformance of small-caps and value-oriented stocks.
The Dow Jones Industrial Average increased 0.2%, while the Nasdaq Composite fell 0.9% amid relative weakness in the mega-cap stocks.[…]
Optimism surrounding the data fueled the gains in the S&P 500 financials (+2.2%), industrials (+1.7%), utilities (+1.8%), and real estate (+1.4%) sectors, which are four of the five sectors down this year. The top-weighted information technology sector pulled back 1.6% today.[…]
U.S. Treasuries finished with modest losses. The 2-yr yield increased two basis points to 0.13%, and the 10-yr yield increased three basis points to 0.56%. The U.S. Dollar Index advanced 0.7% to 93.41. WTI crude futures fell 1.9%, or $0.78, to $41.17/bbl.[…]
- The Employment Situation Report for July can fairly be labeled better than feared given the surprisingly weak ADP Employment Change Report seen earlier in the week. The government’s official report indicated that private-sector payrolls increased by 1.462 million in July. The nonfarm payrolls number was even larger at 1.763 million.
- The key takeaway from the report is that the labor market is recovering from the shock of the COVID-induced seizure, but still has a long way to go, evidenced by the 10.2% unemployment rate and a 55.1% employment-population ratio that is far below the 60.7% level seen a year ago.
- Wholesale inventories decreased 1.4% in June (Briefing.com consensus -2.0%) following an unrevised 1.2% decline in May.
- Nasdaq Composite +22.7% YTD
- S&P 500 +3.7% YTD
- Dow Jones Industrial Average -3.9% YTD
- Russell 2000 -6.0% YTD
..NYSE Adv/Dec 1867/1034. ..NASDAQ Adv/Dec 1901/1358.