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U.S. equity index futures slightly red: Dow off ~0.4%
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U.S. ADP national employment 106k vs 178k estimate
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Euro STOXX 600 index up ~0.2%
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Dollar, bitcoin down; gold, crude ~flat
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U.S. 10-Year Treasury yield falls to ~3.46%
Welcome to the home for real-time coverage of markets brought to
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S&P 500 INDEX: GOLDEN CROSS NEARS (0900 EST/1400 GMT)
The spread between the S&P 500 index's rising 50-day
moving average (DMA) and its descending 200-DMA ended Tuesday at
just over -8 points:
That's the tightest reading since March 14, 2022. At that
time, however, the 50-DMA had broken below the 200-DMA, and
these closely watched moving averages were diverging.
Given that they are now converging at just over 4 points per
session, there is potential for a golden cross to occur over the
next few days. Such a development can potentially suggest a
major advance is underway.
The last such cross occurred in the wake of the pandemic
crash on July 9, 2020. That golden cross occurred 75 trading
days after the March 23, 2020 SPX low. This time, Tuesday marked
the 74th trading day since the SPX's October 13, 2022 low, so
there will a close symmetry in time should the cross happen by
the week's end.
From the July 2020 cross, the SPX advanced more than 50%
into its early-January 2022 record high.
Meanwhile, the SPX, which closed at 4,076.50 on Tuesday,
faces resistance at four distinct September 2022-January 2023
highs that run from 4,094.21 to 4,119.28.
There is support around 4,015 (233-DMA/January 30th high)
then 3,975 (broken resistance line from January 2022 high). The
50- and 200-DMA's should be down around the 3,952-3,948 area on
Wednesday.
(Terence Gabriel)
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GMT - CLICK HERE
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
