S&P Index futures fell by 1.11% today currently trading at 2105.50 lower by 19.00 points for the session, hitting a fresh 7 day low. The main talk amongst the trade were concerns about Greece and some positive economic data which again fueled expectations that a U.S. rate hike is coming sooner than later. How many times have we heard this before? The U.S. Dollar surged 1.3 percent as most commodity prices traded lower. All major S&P 500 sectors fell, with oil prices being the standout which capped energy and transportation shares.
Economic data which came out earlier in the day displayed that U.S. business investment spending plans stiffly increased in April, with consumer confidence gathering momentum as housing prices continued their climb. We also have to keep in mind Fed. Chair Yellen’s comments Friday stating that they may raise rates this year if the economy continues improving as they’ve forecasted. The prospect of higher interest rates is definitely the biggest issue fundamentally weighing on the equity markets in our opinion. Who knows if and when it happens but when the music does stop make sure you have a chair to sit down in.
Declining issues on the NYSE outnumbered advancers by 2417 to 662 making the ratio 3.65-to-1, with the S&P 500 Index carving out 5 new 52 week highs and 7 new lows, today’s trading volume was slightly above average.
Technically, would anyone dare say the top is in? We aren’t either at this point, however with today’s action in the markets coupled with the action in the currency and energy markets one should tend to keep a close eye on value movements and confirmation for the remainder of the week. The S&P 500 futures managed to settle right at its 20 day moving average and still trading well above the 50 day and the 100 day. Volatility made an about-face reversing and now starting to move higher. Short term support comes in at 2090.00 with resistance now at the 2130.00 area. If downside momentum steps up look for a possible shot down to the 2060 level. This market could start to get interesting in the short term.
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S&P 500 futures: June 15