What are traders chatting about this morning? The technicals ...
Good Morning! US equity futures are firmly in the red, losing 50bp and on lows of the overnight. This follows the European markets, where all eyes are on 10Y Bunds adding another 15bp at one point to hit 75bp - well thru 200dma. EU's Stoxx dropped 1% with all 19 industry groups declining at one point led by Energy and commodity producers. Over in London, the FTSE is under pressure into Election, losing nearly 2% - ArcelorMittal smacked on forecasts. Volumes overall in Europe are quite heavy as Margin Clerks satisfy losses on Bunds - the ECB meets on Greece today - Greek Stocks bucked the selloff, with banking shares jumping 10%. Over in Asia, the Japanese were back after 3 days off, selling Nikkei in decent volume - Aussie dropped 80bp after another rough day for the Financials down under - India was hit as rupee drops - and Shanghai lost another 2.8% amidst margin crackdown headers - biggest 3day drawdown in 2years.
The US 10YY is up small, while the long bond remains just under 3%. Bunds have retraced half of early losses, helping the US10 retreat from 2.3% in the overnight. The DXY is up small, but facing tough resistance overnight at 94.20 - gaining steam against the Euro, while losses continue for the greenback against Yen - the Sterling remains weaker into a long UK election night (results not till tomorrow). Metals are mostly red, led by a 1% drop in Silver, while Gold languishes under yesterday's lows - Eyes remain on the Oil complex, where Brent has a slight bid, but WTI is slipping back towards red after trying to rally early. Wheat remains in the green, adding to yesterday's strong day on reports of record shorts in the complex. Scheduled Catalysts today include Weekly Jobless Claims at 8:30; Natty gas Inventory data at 10:30; ECB's Mersch Speaks in Barcelona at 12:45, and we get US Consumer Credit at 3pm.
Some Key Levels I will be setting alerts for early today -
- Treasuries Resistance - 30Y 3% (psychological) and 10Y 2.19% (200dma)
- $ Just in free fall thru the 100dma. 200dma all the way down by 90.
- SPX (cash) 100dma 2070 - Bounced there y'day, see if can reclaim today
- QQQ's holding above 100dma 105.50. Key support
- IBB $332 - 100dma. A break targets 200dma near $300
- BAC breaking south 200dma ($16.35) - Was a focus breakout group earlier this week.
- XLU (Utilities) and $43 - Recent lows and heavy stops