From yesterday's close of 2795, S&P futures dropped to 2784 and then tried to uptrend reaching 2803 (a gain of 19 points). The uptrend was short lived and sold off finally closing lower at 2789. One of the dominant short term cycle bottomed today but the other one hasn't. On an aggregate basis, the short term cycles are neutral to up-trending.
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| S&P 500 Daily - 02/26/2019 |
Down cycles on US Dollar caused a loss of key support level 96.26 and futures declined to 95.81 finally closing at 95.93. While the hourly, daily charts are oversold with price at the trendline, there should be more weakness as short term cycles have not bottomed yet. Gold gained only 2 points closing at 1331.
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| US Dollar Daily - 02/26/2019 |
On economic front, housing starts dropped by -11.2%. However, Case-Shiller 20-city non-seasonally adjusted home price index rose 0.2% m/m and 4.2% y/y. Similarly, FHFA home price index grew 0.3% m/m and 5.6% y/y. Consumer confidence index rebounded significantly to 131.4 from January's level of 121.7. Tomorrow, we get trade deficit, factory orders, retail/wholesale inventories at 8:30 am EST and pending home sale index at 10:00 am EST.