Short Term Trading Week Starting: 26th Feb, page-80

Mid-Session Update - Corrected

Less Fear on questionable Interest

Short term momentum indicators are somewhat overextended and SPX has opened above 2750 resistance. Bulls want to get the index above 2770. If the bulls can keep price above 2750 there is very little call resistance above. For Monday there is derivatives support at 2730, 2710 and 2680.

US Yields have fallen again overnight.

S&P earnings models for 2018 continue to point to around 15%, with growth projected to increase with each consecutive quarter.

US Dollar Index waffling at 90.00 resistance; some think equities would be capped by a rising dollar.

In comments before EU Parliament, Mario Draghi says the Eurozone’s economy is expanding at a better than expected rate, inflation will gradually increase and that the recent market volatility needs watching.

Fed Chair J Powell will go before Congress on Tuesday (Wednesday 02:00 AEST) and the Senate on Thursday. Market reaction is often pronounced.

S&P/ES/SPY : 2768/2768/276.79
S&P futures trade over the value area and Friday’s RTH high. At the moment they are trying to build a base at 2758.50.

Market Internals
NYSE A-D Lines: Declining from the opening level of around +1500 and now just above the midline.
NYSE Composite Volume: Weak – 10% below average.
NYSE breadth: +1.87:1 Nasdaq breadth: +2.11:1. NYSE TICK: opened 1200+ but has settled and cumulative TICK retains a slightly upward bias near the flat line. TRIN 1.08

Implied Volatility
The VIX is relatively flat. VIX futures also took a hit in price. VXH8: 16.33. VXJ8: 16.40 VIX: 16.41

Open Interest
See above

Equity Related Currencies and Crosses
USD index and related crosses are all flat

Commodities
Gold GCJ8 (+.29% at 1342.20) Copper futures HGK8 (-.26% or 3.2245) and Crude Light Futures CLJ8 is now positive (+.82% and 64.05).

Debt/Bond/Treasury
ZNM8 trades at 120’110 or +.14% and the 10 Year Treasury yield is down again at 2.85%


S&P Futures