Short Term Trading Week Starting: 14 Jan, page-44

US Closing Update

US Indices on Monday’s close: SPX: (-0.53%), NDX: (-0.91%), Dow: (-0.36%) and RUT: (-1.01%)

The Financial sector was the only green S&P sector. Utilities, Health Care and Technology were relatively weak.

Market Internals
NYSE A-D lines: -759. NYSE breadth: -1.33:1 and NASD breadth: -2.42:1. NYSE cumulative TICK was small and just below the neutral line but with some spikes up on the close. TRIN: .78.
NYSE MOC: A rotational day with utilities being sold heavily while financials were bought. At the reveal 15 minutes before the close, we had a sell imbalance of over -1B. With that you had NYSE TICK making some moves down. Then on the close we get a shift to 90% of imbalance Dollars and 80% of imbalance symbols on a buy of +547M. Of that number, Consumer Services and Financials saw the most buying. SPX volume: 2.233B. SPX composite volume: +8.05%. NYSE total volume: +11.16% and NYSE composite volume: +6.05%.

Implied Volatility
VIX: 19.07 or +4.84%. VXF19 (now) : 19.25 or +0.92% . VXG19 (now) : 19.55 or + 0.39%.

Debt
With the China trade imbalance data, US treasuries got a bit of a bump but sold down on the long end during the cash session after the indices bounced from their lows. The yield curve steepened further as the 2-year (-3 bps to 2.52%) to 10-year (+1 bp to 2.71%) spread expanding to 19 bps. The 2-year to 30-year (+2 bps to 3.06%) spread grew to 54 bps.

Incoming
Of course we have the Brexit vote coming up. In the US we have PPI and Core PPI for December as well as the Empire State Manufacturing Survey for January at 08:30 ET/ 21:30 AWST/ 00:30 AET. Stay safe!