Technical Take: S&P 500 Partial Breakout

What’s in Today’s Report:

  • Technical Take: S&P 500 Partial Breakout
  • ISM Non-Manufacturing Index Takeaways

Futures are down nearly 1% this morning, tracking losses in international shares as the recent rally had become near-term overextended and economic data disappointed overnight.

German Industrial Profits rose 7.8% in May but the headline missed estimates calling for a rebound of 10.5% which is weighing on general investor sentiment this morning.

Looking into today’s session, the economic calendar is fairly quiet with just one data point due to be released: May JOLTS (E: 4.900M), however there are four Fed officials speaking today which will warrant some attention: Bostic (9:00 a.m. ET), Quarles (1:00 p.m. ET), Barkin (2:00 p.m. ET) and Daly (2:00 p.m. ET).

Additionally, the Treasury will hold a 3-Yr Note Auction at 1:00 p.m. ET which could influence some movement in rates and the yield curve more broadly and, in turn, has the potential to affect the equity market.

Bottom line, the general theme in markets is profit-taking this morning which will leave very near term technical levels in focus. For the S&P 500 that means the support band between 3,135 and 3,150 will be a key zone to watch today, and if the index breaks below that price area the selling could accelerate as stop-orders are triggered on the way down.