I am sorry to see that the ASX majors had a tough day yesterday, but you seem one of the more sober minded markets in the world and have a unique set of circumstances to contend with. I am hoping you have a break from this lousy action when the new week begins.
US indices on Friday's close: SPX: (+0.82%), IXIC: (+0.79%), Dow: (+0.82%) and RUT: (+0.52%)
Sectors: For most of the session, Utilities (+1.54%) led the way, but toward the end of the day the sector profile became a bit more evened out to the green side. The only red sector was Energy (-0.24%).
Today's close was very bullish, despite most of the day being colored by neutral market internals. There was certainly more action than yesterday. A relatively large inflow via the NYSE MOC auction saw +1.6B to buy on a positive buy/sell percentage into the close, leading to a final number of +948M. That is kind of unusual and its significance might not be changed by Monday's open. There was profit taking into the final minutes but each bout of selling was met with mechanically initiated buying. The SPX is out of a tight wedge and past an important retracement area that corresponds with part of the 3 October down move that restarts on 7 November. It is now also nearly the 200 day moving average. VIX held its ground for most of the session but is dropping post cash session as the ES futures ripped higher to 2764.75 before a tiny blip off that high. SPX 30 minute view -not yet updated for support resistance areas for next week.
Treasuries US Treasuries were a little frenetic and skewed today as the curve flattened a bit. Aside from an overnight spike around 03:00 ET, ZNH19 10 year treasury futures (119'215 or +0.30%) had a kind of linear up day from the cash open . The 2-year (+1 bps to 2.81%) to 10-year (- 2 bps to 3.01%) differential is now at 20 bps. The 2-year to 30-year (-2bps to 3.31%) is now around 50 bps.
Market Internals NYSE A/D lines: spent most of the day slightly negative and ended at +264. NYSE breadth: +1.37:1. NASD breadth: 1.57:1. NYSE TICK: negative intraday to neutral on the close but with a few 1000 plus spikes higher. SPX volume: 3.062B. NYSE MOC: +948M. Internals reflected skittish optimism and last minute risk taking.
Incoming Apart from the obviously important results of the G-20 thing, there are several economic points on Monday. ISM Index and Construction Spending are both out at 10:00 ET or 11:00 AWST/02:00 AET.
The futures session was so interesting from a technical point of view that I forgot all about news flow...well, almost...
(20min delay)
