Short Term Trading week starting 21 Jan, page-84

US Closing Update

Good morning,

US Indices on Wednesday's close: SPX: (+0.22%), NDX: (+0.18%), Dow: (+0.70%) and RUT: (-0.22%)

The DJIA led the indices and the defensive plays led the sector profile with Consumer Staples and Utilities green for most of the day and the majority of the field negative until finally coming into the green within the last half hour of trade. The two underperformers and outliers at the close were Energy and Materials.

ES futures profile was a little more balanced than yesterday's session and closed at 2638.25 leaving a point of control at 2637. The open was brisk and the initial balance saw a high of 2653.75, while intraday action saw an RTH low of 2612.50. SPX ended up closing slightly higher at 2638.70 and on its 5 day average after finding intraday support at its 50 day moving average. NDX found support precisely on its 17 day EMA and is still dealing with the trend line but managed to close within the rectangle on the chart above once again. Dow once again made a successful test of the 50% retracement of the major downtrend and the RUT came down to the top side of its downtrend line.

Market Internals

NYSE A-D lines: -56. NYSE breadth: -1.11:1 and NASD breadth: -1.06:1. NYSE cumulative TICK: Just under the neutral line and flat all day. TRIN: 1.07 -- some selling pressure.
NYSE Closing Auction: +742M to buy at the reveal which held to 15:54 ET and a final imbalance of +21M. SPX volume: 2.239B. SPX composite volume: -13.36%. NYSE composite volume: -14.65% and NYSE total volume: -20.56%. Implied Volatility: VIX: 19.52 or -6.15%, VXG19 : 19.75 or +0.13% and VXH19 : 19.56 or -0.08%.

Debt
Treasuries were sold today but muted and the yield curve was stable. The 2-year (+2 bps to 2.59%) to 10-year (+3 bps to 2.76%) spread is still at 16 bps and the 2-year to 30-year (+2 bps to 3.07%) is also unchanged at 48 bps.

Incoming
On Thursday the US will see Initial and Continuing Claims at 08:30 ET and Leading Indicators at 10:00 ET. Natural Gas Inventories are out at 10:30 ET and the only high impact economic data of the day will be the EIA Crude Inventories at 11:00 ET. Hoping you all have a good day.