Short Term Trading Week Starting: 29 Jan, page-105

US Closing Data

US indices on Thursday's Close: SPX: (+0.86%), NDX: (+1.45%), Dow: (-0.06%) and RUT: (+0.84%)

Thursday's US market internals were similar to Wednesday's but with much higher volume and bigger NYSE auction numbers. This is due to expiration of certain options as well as fund reallocation on a day when treasuries saw robust buying action after Wednesday's dovish FOMC announcement.

Some recent divergence in the XAO/SPX indices as that halfway retrace of the downtrend is giving a bit of resistance and the AUD/USD is of course propped up further on Aussie data. Gold is back stalking the 78.6% retracement in both the GC futures contracts and the GLD, which pulled back from that level today after a decent run.

NYSE A-D lines: +1124. NYSE breadth: +1.78:1 and NASD breadth: +1.57:1. NYSE cumulative TICK: moderate action at about half yesterday's average numbers but above the neutral line. TRIN: 1.25 -- moderate selling pressure.
NYSE MOC: a large negative balance of -2.5B to -2.9B near the reveal which did not flip but softened to -608M to sell. SPX volume: 3.384B. SPX composite volume: +32.35%. NYSE composite volume: +26.24% and NYSE total volume: +65.04%. Implied Volatility: VIX: 16.57 or -6.17%, VXG19 (now): 17.25 or +0.73% and VXH19 (now): 17.90 or +0.70%. VIX futures term structure is in contango again, meaning it is sloping up from the front month.

Debt
Very strong action in treasuries today following the FOMC meeting as the likelihood of another rate hike in the foreseeable future decreased substantially per the fed funds futures.
The 2-year (-7 bps to 2.46%) to 10-year (-6 bps to 2.64%) spread is now 18 bps and the 2-year to 30-year (-5 bps to 3.01%) spread widened to 55 bps.

Incoming
You already know this but on Friday we have Nonfarm and Nonfarm Private Payrolls and associated employment data for January at 08:30 ET /21:30 AWST/00:30 AET, followed by ISM Manufacturing Index for January , University of Michigan Sentiment Final Read for January as well as Construction Spending and Wholesale Inventories at 10:00 ET.