Daily Update - 02/27/2019
The daily momentum has been waning for sometime. At yesterday's close of 2789, technicals showed a sell signal on MACD and negative divergence for RSI on daily chart. Along with this not all short term cycles had bottomed yesterday. The two together led to drop in S&P futures today declining to 2775 from yesterday's close of 2789. At the lows today, technicals showed positive divergence on hourly charts along with all short term cycles bottoming. This triggered a 21 point rebound and S&P futures closed at 2796 (above 2795 pivot) with a gain of 7 points from yesterday's close. For tomorrow, though the daily MACD sell signal still persists, the outlook is positive as per hourly cycles up-trending.
Gold dropped today closing at 1323. US Dollar Index made a lower low today at 95.76 from yesterday's close at 95.93 and then rebounded to close slightly higher at 96.04. Hourly cycles are still down (but almost run out of time) and show slightly more weakness early tomorrow.
On economic front, factory orders rose slightly at 0.1% - the non durable goods dropped -1% while the durable goods rose 1.2% primarily aircraft and transportation goods, the core capital goods continue to decline indicating lower investment. Wholesale inventories rose 1.1% and retail rose 0.9% m/m - inventory overhang continues. On the positive side, pending home sales jumped 4.6%. Tomorrow, we get GDP numbers and jobless claims at 8:30 am, chicago PMI at 9:45 am, and fed balance sheet at 4:30 pm.