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U.S. equity index futures slightly green: S&P 500 up ~0.2%
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May NY Fed manufacturing index -31.8 vs -3.75 estimate
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Euro STOXX 600 index up ~0.1%
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Dollar dips; gold, crude gain; bitcoin up ~1.7%
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U.S. 10-Year Treasury yield edges up to ~3.49%
Welcome to the home for real-time coverage of markets brought to
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S&P 500 INDEX: OUTLOOK STILL CLOUDY (0900 EDT/1300 GMT)
The S&P 500 index is virtually flat over the past six
weeks, up just 0.3% since late March.
Indeed, the SPX continues to struggle just shy of some major
chart barriers. And last week's 0.3% dip provided little clarity
for traders as they remain focused on one big billowy cloud on
the horizon.
The SPX hit a high last week of 4,154.28 before ending
Friday at 4,124.08. Thus, the benchmark index continues to flirt
with the upper edge of the weekly Ichimoku cloud, which resides
around 4,155:
Ichimoku cloud is technical indicator which displays support
and resistance, identifies trends, and measures momentum.
Utilizing midpoints of ranges, a number of lines are generated.
Two of these lines are used to create cloud boundaries. The
entire cloud is shifted forward in time in order to provide a
glimpse of future support and resistance.
Once the SPX broke below the cloud in May of last year, it
has only ended back above it once, on a weekly closing basis.
Rallies failed in early-June of last year, again in mid-August
and mid-December, as well as in early-February of this year.
The SPX managed to end above the upper edge of the cloud on
April 28. However, since then it has fallen two-straight weeks.
Thus, the 4,155 level remains a key hurdle.
Add in additional resistance at the early-February high at
4,195.44, the 23.6% Fibonacci retracement of the March
2020-January 2022 advance at 4,198.70, the 100-week moving
average, which ended Friday at 4,200.75, and the Fed-Chair
Powell August-26 Jackson Hole speech high at 4,203.04, and bulls
may have their heads in the clouds if they expect the SPX will
be able to continue to advance.
That said, clearing these barriers will have the potential
to suggest that its advance is only strengthening.
Among nearby support levels are the rising 50-day moving
average, which ended Friday at about 4,058, and last week's low
at 4,048.28.
(Terence Gabriel)
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
