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U.S. Futures Fall Modestly; Asia Mixed As Chinese PMIs Trough; Europe Drifts Lower Despite Strong PMIs

This morning. U.S. equity futures are modestly lower. In Asia, equity markets closed mixed, as the Nikkei 225 (NYSEARCA:NKY) closed higher at the intraday high. China closed lower after in-line April flash PMIs that suggest that the Chinese economy is troughing. In Europe, indexes are modestly lower, but near their intraday lows despite better than expected PMIs. The dollar is mixed. Commodities are mostly lower. Thursday's Nikkei 225 June 2014 (NKM4) equity futures are down -0.550%.

Trading desks report generally quiet markets overseas with attention to the latest earnings reports and currency and commodity price developments. Following the last six days' rally, the SPX has advanced approximately +3.6%, but sentiment is poor and the advance is regarded skeptically as indexes move toward the top of recent trading ranges. Breaks above 1880 on the SPX are likely to be sold.

U.S. economic and world economic reporting focused on April preliminary manufacturing and services PMIs.

On April 4th, the U.S. equity markets distributed, and the market outlook worsened to "in correction", ending a brief "confirmed uptrend" that began on April 1st. The SPX opens -0.66% below the April 2nd record 1890.90 close.

Tuesday, on higher, but below average volume, major equity indexes rallied to late afternoon highs, then eased to the close. The S&P 500 (SPX), DJ Industrials (DJI), Nasdaq, and NYSE composite closed up +0.41%, +0.40%, +0.97%, and +0.38%, respectively. The DJ Transports (TRAN) rose +0.63% and closed at a record high, though the DJI failed to confirm.

NYSE volume rose +12.6% to 0.93x its 20-day moving average. The SPX and NYSE composite are now +1.69% and +1.91% higher in 2014, while the DJI and Nasdaq are down -0.38% and -0.36%, respectively.

Other notable indexes closed higher. The Russell 2000 (RTY), Nasdaq Internet (QNET), and Nasdaq Biotech (NBI) closed up +1.16%, +1.35%, and +3.23%, respectively. The QNET and NBI are in correction, down -11.8% and -14.1%, respectively, from recent highs.

The 1Q2014 earnings reports began on March 15th, with 128 of 500 SPX companies having now reported, with a +4.71% EPS and +0.12% revenue surprises.

Price earnings multiples are elevated. With SPX equities trading at a 17.1 (compared to 17.0x the prior day) 2013 earnings multiple, attention focuses on 2014 earnings and valuations (17.1x times survey $116.90 2014 SPX operating earnings suggests a 1,994.78 SPX level this year, a +6.13% rise).

Technicals improved, as the Nasdaq recaptured its 20-day moving average. Led by health care, most SPX market segments closed higher. Market breadth was positive, and up volume led down volume. Volatility fell. Treasury bond markets strengthened. On the day, the U.S. Treasury 10-year bond yield fell -0.46 bps to 2.7105%, compared to 2.7151% at the prior close.

This morning, 10-year U.S. Treasury yields are down -0.82 bps at 2.7023%, compared to the prior close. Spanish and Italian 10-year debt yields are near their lowest levels since 2005, at 3.05% and 3.08%, respectively, compared to 3.07% and 3.09% the prior day.

U.S. options markets are unchanged at neutral to bullish, compared to neutral to bullish the prior day. The CBOE SKEW is again above a neutral range.

In pre-market futures trading, June SPX equity futures (SPM4) price near the bottom of a 1870-1876 trading range. After a fair value adjustment of -0.80 points, the SPM4 future prices at 1871.25, down -1.95 points. The SPX opens +1.06% and +1.34% above its respective 20- and 50-day moving averages, and +2.59% and +6.27% above its 200-day moving averages. Initial resistance is 1874.79. Initial support is 1866.08, then 1860.28.

In Asia, equity markets closed mixed. The Nikkei 225 (NKY) rose +1.09% and ended at the intraday high. The NKY remains in correction. The Hang Sang index (HSI) opened higher, but reversed lower in early trading and ended near the intraday low. The Shanghai SE composite (SHCOMP) index opened lower, and after a failed mid-session rally, closed down -0.26%. Today's volumes are unavailable.

Commentary focused on earnings reports and April HSBC Chinese flash manufacturing PMI, which equaled survey. This week, the NKY is up +0.21%, the HSI is down -1.10%, and the SHCOMP is down -1.45%. Last week, the NKY closed up +3.98%, while the HSI and SHCOMP are down -1.06% and -1.54%, respectively. In April, the NKY is down -1.90%, while the HSI and SHCOMP are up +1.68% and +1.62%, respectively, compared to March, when the NKY, HSI, and SHCOMP lost -0.09%, -3.00%, and -1.12%, respectively.

In 2014, the NKY and HSI are down -10.7% and -3.42%, respectively, while the SHCOMP is down -2.30%. In 2013, the NKY rose +56.7%. The HSI closed up +2.87%. The SHCOMP closed down -6.75%.

In China, short-term interbank lending rates remain volatile, as the SHIBO 7-day rate rose +8.00 bps to 3.08%, compared to 3.02% Tuesday, up from a 2.26% low on March 11th, but down from the February 7th 5.41% recent high.

Regional relative strength indexes (RSI) show Tokyo, Hong Kong, and Shanghai in the middle of neutral ranges. The NKY RSI ended at 50.69, compared to 46.45 the prior day, up from an oversold 27.92 on February 4th, the most recent prior yearly low. The HSI RSI fell to 50.62, compared to 56.17 the prior day. The SHCOMP's RSI rose to 47.47, compared to 48.87 the prior session. On June 27, 2013, the index's RSI fell to a low of 15.27, which was also last year's low index close.

In Japan, the NKY closed at 14,546.27, compared to 14,388.77 the prior day, -10.7% below its recent year-end 16,291.31 high and -62.6% below its late-1989 38,915.87 high close. In early trading, the index gapped higher to open above 14,480, then traded narrowly, with an early afternoon 14,459.29 intraday low and closing 14,546.27 intraday high. The index closed +0.10% above its 20-day moving average, but -0.67%, -3.42%, and -0.72% below its respective 50-, 100-, and 200-day moving averages. All market segments closed at least +0.37% higher. Leaders were telecommunications, consumer services, and technology, which rose +1.19%. Laggards were basic materials, industrials, and utilities.

In China, the HSI closed at 22,509.64, compared to 22,730.68 at the prior close. The index opened at the 22,855.26 intraday high, but reversed lower in early trading. The index fell below 22,600 by mid-session and eased through the afternoon to a late 22,495.59 intraday low. Most market segments closed lower. Leaders were consumer services and technology, which rose at least +0.66%, and utilities, which fell -0.01%. Laggards were financials, basic materials, and telecommunications, which fell at least -1.29%. The index closed -5.86% below its recent December 3rd 23,910.47 high, but +23.8% above its 18,185.59 June 4, 2012 low.

In Shanghai, the SHCOMP closed at 2,067.38, compared to 2,072.83 at the prior close, +6.02% above the 1,950.01 June 27th close, last year's low. The index opened lower, but rallied to a mid-morning 2,076.15 intraday high. The rally failed and the index fell to a late afternoon 2,059.18 intraday low, before improving through the final hour. Leaders were utilities, which rose +0.02%, and industrials and consumer goods, which fell at least -0.03%. Financials fell -0.42%. Laggards were technology, consumer services, and telecommunications, which fell at least -0.80%.

In Europe, equities are modestly lower and near their intraday lows. The Euro Stoxx50, FTSE 100, CAC 40, and DAX are down -0.30%, -0.13%, -0.37%, and -0.35%, respectively. The Spanish IBEX 35 is up +0.19%. The Italian FTSE MIB down -0.38%.

Economic reporting focuses on Market manufacturing and services PMIs. Commentary focuses on today's earnings reports.

European bourses have recently outperformed U.S. equity indexes. Intraday Euro Stoxx50 relative strength (RSI) is 57.143, compared to 58.77 at the prior close, in a neutral (30-70) range, but better than its recent February 5th 33.57 low, which coincided with its 2014 low. The indexes lowest recent RSI level was 25.77 on June 24th, which marked the 2013 2,494.54 closing low.

The Euro Stoxx50 trades -1.24% below its 3,230.33 April 4th post-2008 high close, and -39.2% below its 5,249.55 March 31, 2000, all-time closing high. From its prior day 3,199.69 close, the index opened at 3,198 and fell quickly to the 3,189.03 intraday low, with support at 3,190 through the session. Most market segments are lower. Leaders are health care and telecommunications, which rose at least +0.19%, and basic materials, which are down -0.09%. Financials are down -0.11%. Laggards are technology, consumer goods, and industrials, which are down at least -0.56%.

This week, the Euro Stoxx50, FTSE 100, CAC 40, and DAX are up +1.09%, +0.72%, +0.79%, and +1.66%, respectively. Last week, the Euro Stoxx50, FTSE 100, CAC 40, and DAX closed up +1.26%, +0.97%, +1.51%, and +1.01%, respectively. In April, the Euro Stoxx50, FTSE 100, CAC 40, and DAX are up +0.90%, +1.13%, +1.71%, and +0.11%, respectively. In March, Euro Stoxx50 closed up +0.39%, while the FTSE 100, CAC 40, and DAX closed down -3.10%, -0.38%, and -1.40%, respectively.

In 2014, the indexes are mixed. The Euro Stoxx50, CAC 40, and DAX are up +2.61%, +3.97%, and +0.15%, respectively, while the FTSE 100 is down -1.13%. In 2013, the indexes closed up +18.0%, +14.4%, +18.0%, and +25.5%, respectively.

1Q2014 SPX Earnings. Of 128 (of 500) reporting companies, 93 or 73.8% surprised positively on earnings, with an average +4.71% surprise average. Of reporting companies, 65 or 50.8% reported sales or revenues above estimates. The average sales/revenue surprise is +0.12%. Financials leads with respective +7.25% and +0.75% earnings and revenue surprises. Information technology lags with respective +0.63% and -0.66% earnings and revenue surprises.

Valuation. The SPX trades at 17.1x estimated 2013 earnings ($110.15), 16.1x estimated 2014 earnings ($116.90), 14.4x estimated 2015 earnings ($130.53), and 13.0x estimated 2016 earnings ($145.10). The 10-year average median price/earnings multiple is 15.9x. Analysts expect 2014, 2015, and 2016 earnings to grow +6.13%, +11.7%, and 11.2%, respectively.

The KBW Bank Index (BKX) trades at 13.5x 2013 adjusted EPS ($5.16), 12.8x estimated 2014 earnings ($5.40), 11.5x estimated 2015 earnings ($6.05), and 10.3x 2016 earnings ($6.77). Analysts expect 2014, 2015, 2016 EPS will grow +4.64%, +12.1%, and +11.8%, respectively.

Composite, index, and equity options. Options markets are unchanged at neutral to bullish, compared to neutral to bullish the prior session. Composite options are bullish, index options are bullish, and equity options are neutral. The composite put/call ratio is 0.74, compared to 0.76 the prior day, and better than 5- and 10-period moving averages of 0.84 and 0.86, respectively. The index put/call ratio is 0.71, compared to 1.01 the prior day, and better than its 5- and 10-period moving averages of 0.89 and 0.89, respectively. The equity put/call ratio closed the day at 0.76, compared to 0.68 the prior day, and better than its 5- and 10-period moving averages of 0.83 and 0.88, respectively.

NYSE Volume, Breadth Indicators. Volume rose +12.6% to 679.29 million shares, compared to 603.40 million shares the prior day, 0.93x the 731.33 million share 20-day moving average. Market breadth was positive, and up volume led down volume. Advancing stocks led by +1,431 (compared to +736 the prior day) or 2.76:1. Up volume was 2.42:1 down volume.

Market Outlook and Distribution Day Count. On April 4th, the U.S. equity markets distributed, and the market outlook worsened to "in correction", ending a brief "confirmed uptrend" that began on April 1st. The SPX opened April 3rd at a record 1890.90, up +0.99% from the April 1st 1872.34 open. Today, the SPX opens -0.60% below the April 2nd record close.

Libor, LOIS, Currencies, Treasuries, Commodities:

· USD LIBOR is 0.09150%, compared to 0.09050% the prior day. USD 3-month LIBOR is 0.22860%, down from 0.22585% the prior day, and compares to the January 4, 2013, recent peak of 0.58250%.

· The US Libor-OIS (LOIS) spread is 14.060 bps, compared to 13.585 bps the prior day, and compares to the recent June 12, 2012, 46.785 bps high. Euribor-OIS is 14.300 bps, down from 15.000 bps the prior day, and down from the December 27, 2011, high of 98.800 bps. Moves in the LOIS indicate changes in intra-bank lending risk premiums.

· The 3-month Euro basis swap is -1.185 bps, compared to -1.092 bps the prior day, up from a trough of -147.00 bps on December 14, 2011, but far better than a normal -10 bps and -40 bps range.

· German 10-year debt yields are 1.53%, compared to 1.53% the prior day. Japanese 10-year debt yields are 0.62%, compared to 0.61% the prior day.

· Spanish and Italian 10-year debt yields are at their best levels since 2005. Spanish 10-year debt yields are 3.05%, compared to 3.07% the prior day. Italian 10-year debt yields are at 3.08%, compared to 3.09% the prior day.

· U.S. Treasury yields are mixed, with 2- and 10-year maturities yielding 0.438% and 2.704%, respectively, compared to 0.399% and 2.711% Tuesday. The yield curve narrowed -4.480 bps, with the 2- to 10-year spread at +2.266%, compared to 2.311% the prior day. In the past year, the 2- and 10-year spread varied from a low of +1.429% on May 1, 2013, to a high of +2.648% on December 31, 2013.

· The U.S. dollar is weaker compared to the Euro and Japanese yen, but slightly stronger compared to the British pound. The dollar trades at US$79.743, compared to a US$79.698 intraday low and US$79.905 the prior day, and worse compared to its $79.949 50-day, US$80.274 100-day, and US$80.613 200-day averages. The euro trades at US$1.3840, compared to a US$1.3855 intraday high and US$1.3805 the prior day. The euro trades better compared to its US$1.3794 50-day and US$1.3725 100-day averages, and compares to a multi-year low of US$1.1877 on June 7, 2010. In Japan, the dollar trades at ¥102.23, compared to ¥102.62 the prior day. The yen trades better than its 50-day moving average ¥102.38, and better than its January 1st 105.31 closing low, its weakest prior multi-year closing low.

· Citigroup Economic Surprise Index improved to -22.90, compared to -23.60 the prior day, better than its -45.90 worst on April 7th, but continuing its string of consecutive negative readings since February 18th. The index is better compared to its respective -27.14 5-day and -34.57 10-day moving averages. Last June 10th, the index fell to a then 52-week low of -33.26. The index improved and turned positive on July 30th and rose to 53.30 on October 1st, but subsequently fell on dollar weakness to -2.10 on October 31st. It subsequently strengthened to a +72.70 high on January 15th, but then subsequently trended lower and turned negative on February 19th and fell to a -45.90 124-week low on April 7th . After a lag, the CESIUSD correlates with EPS revisions.

· Commodities prices are mixed, with mixed energy, higher precious metals, higher aluminum and copper, and mostly lower agriculture prices.

Volatility, Skew:

· The CBOE SPX Volatility Index (VIX) fell -0.82% to 13.19, compared to 13.25 at the prior close. The VIX is -8.49% below the 14.41 20-day moving average. Its 30-day high is 18.22. Its 30-day low is 12.60. The index's all-time closing low is 9.31 on December 22, 1993. The long-term average is 20.14.

· The Euro Stoxx 50 volatility index (V2X) is 16.72, down -0.56% compared to 16.81 at the prior day's close. The V2X index trades -4.68% below its 17.54 20-day moving average, -31.3% below the 24.35 30-day high, and +7.85% above the 15.50 30-day low.

· The Hang Seng volatility index (VHSI) closed at 14.89, up -0.67% compared to 14.99 at the prior close. The VHSI index trades -4.99% below 15.67 20-day moving average. Its lowest historical close was 11.72, on June 30, 2005.

· CBOE SKEW (SKEW) rose +6.21% to 126.51, compared to 119.11 the prior session, again above a neutral reading (115-120), but below 130, a level that correlates well with short-term market tops. The recent record high was 143.20 on December 20th. Its recent low was 112.47 on May 25, 2013. Spikes in excess of 130 correlate well with short-term market tops, though not in October or November. The index rarely falls below 110, last on July 31, 2009. The index correlates with market tail risks, the cost of buying out-of-the-money, long-dated options, i.e., options not affected by expirations. A rise suggests that investors are buying more puts than calls, a bearish signal.

U.S. Economic Reporting and News:
 

  • The latest week's MBA mortgage applications rose %, compared to +4.3% prior.
  • At 9:45, April preliminary Markit US manufacturing PMI, with 56.0 survey and 55.5 prior.
  • At 10:00, March MoM new home sales, with +2.3% survey and -3.3% prior.


Overseas Economic Reporting and News:
 

  • Australia - MoM skilled vacancies fell -0.2%, compared to +0.3% revised prior.
  • China - April preliminary HSBC manufacturing PMI was 48.3, compared to 48.3 survey and 48.0 prior.
  • Eurozone - April preliminary Markit manufacturing PMI was 53.3, compared to 53.0 survey and prior. Markit services PMI was 53.1, compared to 52.5 survey and 52.2 prior. 2013 government debt/GDP ratio was 92.6%, compared to 90.7% revised prior.
  • France - April preliminary manufacturing PMI was 5.9, compared to 51.9 survey and 52.1 prior. Markit services PMI fell to 50.3, compared to 51.3 survey and prior.
  • Germany - April preliminary manufacturing PMI was 54.2, compared to 53.8 survey and 53.7 prior. Markit services PMI was 55.0, compared to 53.3 survey and 53.0 prior.


Company Ratings/News:
 

  • Bank of NY Mellon (NYSE:BK) - Reported adjusted earnings of $0.560, compared to $0.535 survey, and revenues of $3.663 billion, compared to $3.733 billion revenue survey.
  • Regions Financial (NYSE:RF) - Reported adjusted earnings of $0.21, compared to $0.195 survey, and revenues of $1.254 billion, compared to $1.294 billion revenue survey.
  • Synovus Financial (NYSE:SNV) - Reported adjusted earnings of $0.05, compared to $0.046 survey, and revenues of $270.696 million, compared to $263.545 million revenue survey.
  • Signature Bank (NASDAQ:SBNY) - Reported adjusted earnings of $1.41, compared to $1.346 survey, and revenues of $196.638 million, compared to $189.571 million revenue survey.


Tuesday's Trade. On higher, but below average NYSE volume, U.S. equity indexes closed higher. The SPX, Nasdaq, and NYSE composite rose +0.41%, +0.40%, +0.97%, and +0.38%, respectively. The SPX, DJI, and NYSE composite are up in April, but only the SPX and NYSE composite are now higher in 2014.

Other notable indexes also rallied. The Russell 2000 (RTY) rose +1.16%, and closed -4.39% below its March 4th record close. The Nasdaq Internet Index (QNET) rose +1.35%, and is in correction at -11.8% below its March 6th closing high. The Nasdaq Biotech Index (NBI) rose +3.23%, and is in correction, down -14.1% from its recent February 25th record high.

On April 4th, the U.S. equity markets distributed, and the market outlook worsened to "in correction", ending a brief "confirmed uptrend" that began on April 1st. Today, the SPX opens -0.69% below the April 2nd record 1890.90 close.

Market breadth was positive, with gainers 2.76x losing stocks. Most SPX market segments closed higher. Leaders were health care, consumer services, and financials, which rose at least +0.67%. Laggards were utilities, which rose +0.02%, and industrials and oil and gas, which fell at least -0.01%.

NYSE volume rose +12.6% to 679.29 million shares, compared to 603.40 million shares the prior day, 0.93x the 731.33 million share 20-day moving average volume. On the day, bond markets strengthened. The U.S. 10-year yield opened at the 2.7169%, traded narrowly lower to a mid-morning 2.6969% intraday low, but then rose to its mid-afternoon 2.7461 intraday high. The yield fell through the final hour to end at 2.7105%, down -0.46 bps compared to the 2.7151% prior close.

From its prior day 1871.89 SPX close, June 2014 SPX futures (SPM4) suggested a flat open. The SPX index opened slightly higher , but rallied in early trading to 1880 by mid-morning and the 1884.89 intraday high by mid-afternoon. The index fell through the final hour, narrowing the day's gains. The index closed at 1879.55, -0.60% below its 1890.90 April 2nd record close. The index closed +74.9% above the 1074.77 October 4, 2011, intraday low, the bottom of the most recent correction.

The DJ Transportation index (TRAN) rose +0.63%, compared to DJI's +0.40% gain, and closed at a new record. From its prior 7,686.19 close, the TRAN trended higher through the morning session to a late afternoon 7.764.90 intraday high. The TRAN eased with the broader market to the close. The TRAN closed at 7,695.51, +0.51% above its April 2nd prior record high close. Volume rose +9.54% to 12.517 million shares, compared to 11.427 million shares the prior session, and 0.97x the 15-day moving average volume. The TRAN closed +2.55% and +3.69% above its 20- and 50-day moving averages, and +5.01% and +10.3% above its respective 100- and 200-day moving averages.

Market volatility fell -0.45%, as the CBOE SPX volatility index (VIX) closed at 13.19, compared to 13.25 at the prior close. The VIX opened lower and fell to a mid-afternoon 12.90 intraday low, but in the final hour volatility rose as the market weakened, rising to a late 13.26 intraday high. The VIX's all-time closing low was 9.31, on December 22, 1993. Its record high was 89.53 in December 2008. Its lifetime average is 20.01. The CBOE put/call SKEW rose +6.21% to 126.51, compared to 119.11 the prior session, within a neutral 115-120 range for the first time since March 27th, and below 130, a level that correlates well with short-term market tops.

The market's technical factors improved as the Nasdaq recaptured its 20-day moving average. The SPX relative strength (RSI) improved to 56.90, compared to 54.90 the prior day, in a neutral range, and better than an oversold 31.24 on February 3rd. The RSI is also down from an overbought 71.26 on December 31st, when the SPX closed at an earlier record high, but above earlier oversold levels of 35.14 on August 27th and 39.19 on October 9th. This week, the SPX, DJI, Nasdaq, and NYSE composite are up +0.79%, +0.64%, +1.61%, and +0.63%, respectively. Last week, the SPX, DJI, Nasdaq, and NYSE composite closed up +2.71%, +2.38%, +2.39%, and +2.45%, respectively. In April, the SPX, DJI, and NYSE composite are up +0.39%, +0.34%, and +0.68%, respectively, while the Nasdaq remains down -0.89%. In March, the DJI and NYSE composite closed up +0.01% and +0.09%, respectively, while the SPX and Nasdaq are down -0.10% and -3.54%, respectively.

In 2014, the SPX and NYSE composite are up +1.69% and +1.91%, respectively, while the DJI and Nasdaq are down -0.38% and -0.36%, respectively. In 2013, the SPX, DJI, Nasdaq, and NYSE composite closed up +29.6%, +26.5%, +38.2%, +23.2%, respectively. All closed at least +5.91% higher in 2012.

KBW Bank Index (BKX). On higher, but below average volume, the BKX rose +0.78% to 69.51, compared to 68.97 at the prior day's close, its 8th consecutive below 70.0 and -4.66% below its 72.91 March 20th post-2008 closing high. In early trading, the BKX opened lower and fell to the 68.69 intraday low, but reversed higher before 10:00 and trended higher to a mid-afternoon 69.83 intraday high. The index eased through the final two hours. Volume rose +21.7% to 51.008 million shares, compared to 41.904 million shares the prior day, and 0.95x the 53.562 million share 15-day moving average.

Large cap banks outperformed the regional banks, as the KBW regional banking index (KRX) rose +0.31%.

This week, the BKX is up +0.72%. Last week, the BKX closed up +1.35%. In April, the BKX is down -3.85%, compared to March, when the BKX closed up +4.94%. In 2014, the BKX is up +0.36%, compared to the SPX's +1.69% gain. In 2013, the BKX rose +35.1%, better than the SPX's +29.6% rise.

The BKX is now +17.4% better than the June 24th 59.19 close, its worst since May 13, 2013. The index crossed above 50 on December 17, 2012, 60 on May 15, 2013, and 70 on January 8, 2014, but then dropped back below 70 on January 24th, which persisted until March 6th. On April 10th, the BKX fell below 70.00 to an April 11th 68.09 closing low. The BKX closed +111.8% above the 32.56 intraday low on October 4, 2011, the bottom of that year's correction. Large-cap bank stocks have outperformed the broader market's rebound, with the SPX up +74.2% in the same period.

The BKX index closed -42.6% below its February 20, 2007, record 121.06 high. The BKX is up +273.3% from its 18.62 March 6, 2009, closing low.

Technical indicators improved as the index recaptured its 100-day moving average. The index closed -2.57% and -1.59% below its respective 20- and 50-day moving averages, but +0.37% and +3.15% above its 100- and 200-day moving average. The 20-day moving average fell -15 bps to 70.64. The 70.05 50-day moving average rose +4 bps. Its 100-day moving average rose +1 bp to 69.25, and the 200-day moving average rose +3 bps to 66.89. The 20-day closed (by +0.59 points) above the 50-day, but the gap narrowed -19 bps. The 50-day moving average closed (by +3.15 points) above the 200-day moving average, and the gap was unchanged. The 100-day moving average closed (by +2.36 points) above the 200-day moving average, and the gap narrowed -1 bp.

The directional movement indicator improved to -9.483, compared to -13.874 the prior day, its 11th consecutive negative reading. Relative strength rose to 45.33, compared to 40.97 the prior day, in a neutral range, up from the recent 32.95 low on February 3rd, but down from an overbought 75.56 and 71.88 on January 9th and 10th, respectively. The recent low RSI level 31.08 on November 14, 2012, which is also the date of the BKX's 2012 closing low. Next resistance is 70.00; next support is 68.86.

SPX, DJI, RTY, TRAN, CCMP, NYA, VIX, SKEW, NKY, EURUSD, USGG10YR, HSI, SHCOMP, SX5E, CAC, DAX, FTSE, JPY, GBP, EUR