In the absence of news, US Indices had an up day as SPX (+.62%) held the 2700 area, bounced over its 50 day moving average and closed just below it. The Dow (+.41%) is still well below its 200 sma. IXIC (+.79%), bounced from its 50 day sma and RUT (+.28%) came nearer it own 50 but remains stuck between that and its 30 day average.
As noted on here on Sunday, the SPX 2700/2710 YTD volume weighted price area was and continues to be an area of interest for bulls and bears alike. Below that there are varying levels of support with the area just about 2670 as a point of interest.
Highest near term resistance is now SPY 275/SPX 2757 and the convergence of derivatives for Friday's expiration is now a bit lower -around SPX 2747 - than it was yesterday.
Overnight SPX futures were frenetic again with a visit to 2693.25, a level revisited in the cash session RTH. SPX itself opened at 2698.69, fell to 2691.99 and at 12:45 began a final run to the intraday high of 2724.34. An interruption to the rally occurred at about 15:15 about the same time news crossed that the president is querying replacements for his current chief of staff. The ephemeral nature of causation vs correlation aside, there was a slight change in tone on that report.
DXY is flat today and AUD/USD had taken back a third of yesterday’s decline but kept only a fraction of those gains. Gold had another rough day.
Italy is suspected of blocking a final communique of EU Economics summit.
Sectors and Core Sectors
Tomorrow is the last trading day of the quarter this is impacting today's broad tape. With an overwhelming lead, telecom (+2.29%) was followed by the all-important technology (+1.08%) and financials (+.86%) as well as real estate (+.86%), consumer discretionary (+.76%), materials (+.44%), consumer staples (+.17%), health care (+.17%) and industrials (+.16%). Relatively weak were the energy (-0.12%) and utilities (0.02%).
The US coal index (+1.94%) was up strongly. S&P drug retailers (-9.94%) was by far the weakest sub sector with healthcare sectors also relatively weak.
NYSE Internals
NYSE A-D Lines: opened flat, fell to -571 and then worked its way back up to neutral by 12:45 ET. From there it spiked higher to close at +611. NYSE breadth: +1.81:1 and NASD breadth: +1.94:1.
NYSE TICK: Above the flat line and moderately strong since noon with a few low ticks to -835 into the close. NYSE TRIN: .85
NYSE MOC: Quarter end window dressing might still be in play, but today's pre close was muted with a final balance of -242M for sale. The sell side on close was dominated by industrials, financials, and healthcare.
Debt
ZN treasury futures gave back a small portion of yesterday's gains.
A 30B auction of 7-year Treasury notes got decent interest with a high yield of 2.809% that was in line with the when-issued yield. The BTC ratio of 2.53x was just above the 12 auction average of 2.52x. The yield curve was relatively unchanged. The 2-year (+1 bps and 2.52%) to 10-year (+2 bps and 2.85%) spread narrowed to 33 bps. The 5-year note: (+3 bps and 2.73%). The 2 to 30-year (+1 bps and 2.98%) spread was unchanged at 46 bps.
Implied Volatility VXN8: 16.50, VXQ8: 16.56 and VIX: 16.85 or -5.92%
Events for Tomorrow
High impact US events for tomorrow are May Personal Income, Personal Spending, PCE Prices and Core PCE prices before the open. Chicago PMI and UofM Consumer Sentiment - Final are out after the cash open
(20min delay)