Wednesday, February 20, 2019

Daily Update

Daily Update - 02/20/2019

From yesterday's close at 2778, S&P futures traded down a bit to 2773 and then the already up trending hourly cycles took futures to a new interim high of 2790 (a gain of 17 points). At this moment, the resistance from 2795 pivot kicked in and triggered a quick sell off back to 2773. The correction was short-lived and took futures for a green close at 2787. The next few days are critical and the way S&P trades will guide the trend. We may get some more push up early tomorrow but soon cycles are expecting a weakness to start.

US Dollar futures traded as low as 96.12 but then reversed with bottoming hourly cycles to close green at 96.39 with a hammer candle. It should trade higher now with up trending cycles.

Gold futures traded as high as 1349.75. With US dollar cycles turning up and gold cycles turning down, we should see some weakness in gold and other precious metals.

Tomorrow is full of economic data release - durable goods order and jobless claims at 8:30 am, PMI composite flash at 9:45 am, and existing home sales along with leading indicators at 10:00 am. Finally, Fed balance sheet and money supply at 4:30 pm.