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U.S. Futures Head Higher; Asia Mixed, Europe Rallies After European Elections

This morning. U.S. equity futures are moderately higher after conclusion of the Memorial Day weekend, and at the upper end of their morning trading range. Economic reporting is heavy, with a focus on U.S. durable goods and capital shipments. In Asia, equity markets closed mixed. In Europe, equities indexes are modestly mixed after a strong rally yesterday following European parliamentary elections. Intraday, the German DAX is trading a record high. The dollar is mixed. Treasury 10-year yields are slightly lower. The recent worldwide sovereign bond market rally appears to have resumed. Spanish and Italian 10-year yields are lower. Commodities are mostly mixed. Wednesday's Nikkei 225 June 2014 (NKM4) equity futures are unchanged.

Despite Friday's S&P 500 (SPX), NYSE composite, and DJ Transport (TRAN) index record closes, the market outlook remains "in correction". 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 +0.20% above its May 13th record close.

Friday, major indexes rose in early trading, and generally rallied through the session to late session intraday highs, though there were no new record closes. The S&P 500 (SPX), DJ Industrials (DJI), Nasdaq, and NYSE composite rose +0.42%, +0.38%, +0.76%, and +0.35%, respectively. The SPX, DJI, Nasdaq, and NYSE composite are +2.82%, +0.18%, +0.22%, and +2.71% higher in 2014, respectively. Volume fell, and remains below its 20-day moving average. NYSE volume fell -4.05% to 0.81x its 20-day moving average.

The DJ Transports (TRAN) rose +0.80% and set a new record close. Momentum indexes also rose. The Russell 2000 (RTY) rose +1.11%, but is off -6.82% from early March highs. The Nasdaq Internet (QNET) index rose +1.58%, and the Nasdaq Biotech (NBI) index +0.24%. The QNET and NBI are in correction, down -13.8% and -14.2%, respectively, from recent highs.

Trading desks noted the mixed Asia close. Sentiment remains negative despite a generally healthy economic backdrop.

Today's economic reporting is heavy following the Memorial Day holiday. Commodity and currency price developments are another focus. Sovereign debt yields are lower. Relative strength indicators do not suggest that the market is particularly overbought, though the 17.2x price earnings multiple is well in excess of 15.9x historical average.

The 1Q2014 earnings reports began on March 15th, and 489 of 499 SPX companies have now reported, with respective +5.93% EPS and +0.19% revenue surprises.

Price earnings multiples remain elevated. With SPX equities trading at a 17.2 (compared to 17.1 the prior day) 2013 earnings multiple, attention focuses on 2014 earnings and valuations (17.3x times survey $117.93 2014 SPX operating earnings suggests a 2034.83 SPX level this year, a +7.07% rise).

Technicals were little changed. 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 -1.79 bps to 2.5320%, compared to 2.5499% at the prior close.

This morning, 10-year U.S. Treasury yields are down -0.17 bps at 2.5303%, compared to the prior close. World sovereign bond markets are mixed. Notably, Spanish and Italian 10-year debt yields are lower, yielding +2.85% and +2.96%, respectively, compared to 2.89% and +2.98% the prior day.

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

In pre-market futures trading, June SPX equity futures (SPM4) price near the middle of a 1902-1906 trading range. After a fair value adjustment of +1.05 points, the SPM4 future prices at 1905.00, up +6.97 points. The SPX opens +0.95% and +1.64% above its respective 20- and 50-day moving averages, and +2.76% and +6.10% above its 200-day moving averages. Initial resistance is 1903.42. Initial support is 1895.48, then 1890.43.

In Asia, equity markets closed mixed. The Nikkei 225 (NYSEARCA:NKY) rose +0.23%, but closed off early afternoon highs. The NKY remains in correction. On April 21st, its 50-day moving average moved below its 200-day moving average. Its 200-day moving average is now below its 100-day moving average. The Hang Sang index (HSI) closed down -0.08%. The Shanghai composite (SHCOMP) fell -0.34%. Both HSI and SHCOMP 50-day moving averages are also below their respective 200-day moving averages. Today's volumes are unavailable.

Asian economic reporting was light. Commentary focused on currency and commodity developments.

Last week, the NKY, HSI, and SHCOMP closed up +3.59%, +1.10%, and +0.74%, respectively. The prior week, the HSI and SHCOMP closed up +3.89% and +0.76%, respectively, while the NKY closed down -0.73%. In May, the NKY is up +2.32%, the HSI is up +3.66%, and the SHCOMP is up +0.41%. In April, the NKY closed down -3.53%, while the HSI and SHCOMP closed down -0.08% and -0.34%, respectively.

In 2014, the NKY and HSI are down -10.2% and -1.55%, respectively, while the SHCOMP is down -3.85%. 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 +11 bps to 3.26%, compared to 3.15% the prior day, 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 neutral ranges. The NKY RSI ended at 58.54, compared to 57.72 the prior day, up from an oversold 27.92 on February 4th, the most recent prior yearly low. The HSI RSI rose to 62.16, compared to 62.89 the prior day. The SHCOMP's RSI fell 49.03, compared to 51.26 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 14,636.52, compared to 14,602.52 the prior day, -10.2% below its recent year-end 16,291.31 high and -62.4% below its late-1989 38,915.87 high close. The index opened modestly lower, but immediately reversed higher and rallied to an early afternoon 14,744.16 intraday high. The index traded narrowly lower until the final hour, when it faded into the close. Most market segments closed higher. Leaders were basic materials, consumer services, and industrials, which rose at least +0.33%. Laggards were oil and gas, which rose +0.05%, and consumer goods and utilities, which fell at least -0.02%.

In China, the HSI closed at 22,944.30, compared to 22,963.18 at the prior close. The index traded narrowly lower through the session with an early 22,886.46 intraday low and 22,984.46 intraday high. Most market segments closed higher. Leaders were industrials, oil and gas, and technology, which rose at least +0.13%. Laggards consumer goods, consumer services, and telecommunications, which fell at least -0.28%. The index closed -4.04% below its recent December 3rd 23,910.47 high, but +26.2% above its 18,185.59 June 4, 2012 low.

In Shanghai, the SHCOMP closed at 2,034.57 compared to 2,041.48 at the prior close, +4.34% above the 1,950.01 June 27, 2013 close, last year's low. The index traded narrowly around breakeven through mid-afternoon, when it set its 2,044.11 intraday high, then eased through the final two hours to a late 2,033.21 intraday low. All market segments closed at least -0.07% lower. Leaders were financials, utilities, and industrials. Laggards were basic materials, telecommunications, and consumer services.

In Europe, equities are modestly mixed, but the DAX trades at an all-time high and the Euro Stoxx50 and CAC 40 at multi-year highs. The Euro Stoxx50, FTSE 100, and DAX are up +0.06%, +0.37%, and +0.37%, respectively, while the CAC 40 is down -0.09%. The Spanish IBEX 35 is up +0.31%. The Italian FTSE MIB is up +0.05%.

Economic reporting is light. Attention is on recently volatile sovereign bond yields (Spanish and Italian 10-year yields have rallied again after last week's weakness. Other foci are currency and commodity developments. The euro is stronger today compared to the dollar.

European bourses have recently outperformed U.S. equity indexes. Intraday Euro Stoxx50 relative strength (RSI) is 62.24, compared to 62.00 at the prior close, moving above the middle of a neutral (30-70) range, 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 -38.4% below its 5,249.55 March 31, 2000, all-time closing high. From its prior day 3,240.39 close, the index fell to an early 3,230.58 intraday low, then reversed higher by late morning to the 3,246.48 intraday high. The index currently trades at 3,241.74. Market segments are mixed. Leaders are technology, financials, and basic materials, which are up at least +0.32%. Laggards are consumer goods, utilities, and oil and gas, which are down at least -0.34%.

This week, the Euro Stoxx50, FTSE 100, CAC 40, and DAX are up +1.21%, +0.36%, +0.66%, and +1.64%, respectively. Last week, the Euro Stoxx50, FTSE 100, and DAX are up +0.36%, +0.66%, and +1.64%, respectively, while the FTSE 100 closed down -0.58%. In May, the Euro Stoxx50, FTSE 100, CAC 40, and DAX are up +1.37%, +0.89%, +0.79%, and +3.38%, respectively. In April, the Euro Stoxx50, FTSE 100, CAC 40, and DAX closed up +1.16%, +2.75%, +2.18%, and +0.50%, respectively.

In 2014, the indexes are higher. The Euro Stoxx50, FTSE 100, CAC 40, and DAX are up +4.28%, +1.35%, +5.28%, and +3.93%, respectively. In 2013, the indexes closed up +18.0%, +14.4%, +18.0%, and +25.5%, respectively.

1Q2014 SPX Earnings. Of 489 (of 499) reporting companies, 365 or 75.0% surprised positively on earnings, with an average +5.93% surprise average. Of reporting companies, 257 or 52.9% reported sales or revenues above estimates. The average sales/revenue surprise is +0.19%. Energy leads with respective +10.0% and -1.01% earnings and revenue surprises. Financials have a respective +5.67% and +0.26% earnings and revenue surprises. Consumer staples lags with respective +0.11% and -0.73% earnings and revenue surprises.

Valuation. The SPX trades at 17.3x estimated 2013 earnings ($110.15), 16.1x estimated 2014 earnings ($117.93), 14.5x estimated 2015 earnings ($131.08), and 13.1x estimated 2016 earnings ($145.41). The 10-year average median price/earnings multiple is 15.9x. Analysts expect 2014, 2015, and 2016 earnings to grow +7.07%, +11.2%, and 11.0%, respectively.

The KBW Bank Index (BKX) trades at 13.2x 2013 adjusted EPS ($5.16), 12.7x estimated 2014 earnings ($5.37), 11.3x estimated 2015 earnings ($6.00), and 10.2x 2016 earnings ($6.70). Analysts expect 2014, 2015, 2016 EPS will grow +3.99%, +11.9%, and +11.7%, respectively.

Composite, index, and equity options. Options markets improved to neutral to bullish, unchanged from neutral to bearish to bullish the prior session. Composite options are bullish, index options are bullish, and equity options are neutral. The composite put/call ratio is 0.75, compared to 0.86 the prior day, and better than 5- and 10-period moving averages of 0.87 and 0.88, respectively. The index put/call ratio is 0.65, compared to 0.85 the prior day, and better than its 5- and 10-period moving averages of 0.87 and 0.88, respectively. The equity put/call ratio closed the day at 0.82, compared to 0.88 the prior day, and better than its 5- and 10-period moving averages of 0.86 and 0.89, respectively.

NYSE Volume, Breadth Indicators. Volume fell -4.05% to 554.13 million shares, compared to 577.49 million shares the prior day, 0.81x the 681.58 million share 20-day moving average. Market breadth was positive, and up volume led down volume. Advancing stocks led by +1,157 (compared to +905 the prior day) or 2.23:1. Up volume was 2.37:1 down volume.

"In Correction" Market Outlook and Distribution Day Count. Despite Friday's record closes, volume was light and far below average. The market outlook remains unchanged at "in correction". 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 +0.20% above the May 13th record close.

Libor, LOIS, Currencies, Treasuries, Commodities:

· USD LIBOR is 0.08840%, compared to 0.08770% the prior day. USD 3-month LIBOR is 0.22985%, up from 0.22935% the prior day, and compares to the January 4, 2013, recent peak of 0.58250%.

· The US LIBOR-OIS (LOIS) spread is 13.785 bps, compared to 13.135 bps the prior day, and compares to the recent June 12, 2012, 46.785 bps high. Euribor-OIS is 20.100 bps, compared to 19.700 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 -10.000, compared to -7.155 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 1.39%, compared to 1.42% the prior day.

· Japanese 10-year debt yields are 0.59%, compared to 0.59% the prior day.

· Spanish and Italian 10-year debt yields declined. Spanish 10-year debt yields are 2.86%, compared to 2.89% the prior day, and below their recent May 8th 2.884% low. Italian 10-year debt yields are at 2.97%, compared to 2.98% the prior day and their May 11th 2.911% recent low. Spanish and Italian 10-year debt years peaked at 7.621% and 7.261%, respectively, in July 2012 and November 2011.

· U.S. Treasury yields are slightly higher, with 2- and 10-year maturities yielding 0.342% and 2.537%, respectively, compared to 0.342% and 2.532% Friday. The yield curve widened -0.540 bps, with the 2- to 10-year spread at +2.195%, compared to 2.190% 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$80.287, compared to US$80.171 intraday low and US$80.393 the prior day, and mixed compared to its $79.901 50-day, US$80.159 100-day, and US$80.390 200-day averages. The euro trades at US$1.3646, compared to a US$1.3615 intraday low and US$1.3646 the prior day. The euro trades worse compared to its US$1.3785 50-day and US$1.3739 100-day averages, and compares to a multi-year low of US$1.1877 on June 7, 2010. In Japan, the dollar trades at ¥101.91, compared to ¥101.94 the prior day. The yen trades better than its 50-day moving average ¥102.24, and better than its January 1st 105.31 closing low, its weakest prior multi-year closing low.

· Citigroup Economic Surprise Index improved to +1.40, compared to -0.30 the prior day. The index is mixed compared to its respective +2.12 5-day and -2.98 10-day moving averages. From a +72.70 high on January 15th, the index 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, lower precious metals, higher aluminum and copper, and lower agriculture prices.

Volatility, Skew:

· The CBOE SPX Volatility Index (VIX) fell -5.57% to 11.36, compared to 12.03 at the prior close. The VIX is -11.6% below the 12.85 20-day moving average. Its 30-day high is 17.85. Its 30-day low is 11.36. The index's recent closing low was 11.05 on March 14, 2013. Its all-time closing low is 9.31 on December 22, 1993. The long-term average is 20.00.

· The Euro Stoxx 50 volatility index (V2X) is 15.21, down -0.25% from 15.25 at the prior day's close. The V2X index trades -8.57% below its 16.64 20-day moving average, -25.5% below the 20.43 30-day high, and +1.25% above the 15.02 30-day low.

· The Hang Seng volatility index (VHSI) closed at 14.40, up +0.14% compared to 14.38 at the prior close. The VHSI index trades -4.18% below its 15.03 20-day moving average. Its lowest historical close was 11.72, on June 30, 2005.

· CBOE SKEW (SKEW) rose +1.17% to 125.13, compared to 123.68 the prior session, 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 20, 2013. 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:
 

  • At 8:30, April durable goods orders rose +0.8%, compared to -0.7% survey and +3.6% revised prior.
  • Durable goods ex-transportation were +0.1%, compared to +0.0% survey and +2.9% revised prior.
  • April capital goods orders, non-defense ex-aircraft fell -1.2%, compared to -0.3% survey and +4.7% revised prior.
  • April capital goods shipments, non-defense, ex-aircraft fell -0.4%, compared to -0.2% survey and +2.1% revised prior.
  • At 9:00, March FHFA MoM house price index, with +0.5% survey and +0.6% prior.
  • March MoM S&P/CaseShiller 20 city price index, with +0.70% survey and +0.76% prior.
  • At 9:45, May preliminary Markit composite PMI, with 55.6 prior.
  • May preliminary composite PMI, with 55.0 survey and prior.
  • At 10:00, May consumer confidence index, with 83.0 survey and 82.3 prior.
  • May Richmond Fed manufacturing index, with 8 survey and 7 prior.
  • May Dallas Fed manufacturing activity, with 9.5 survey and 11.7 prior.


Overseas Economic Reporting and News:
 

  • Japan - May small business confidence was 46.6, compared to 45.4 prior.
  • France - May consumer confidence was 85, compared to 85 survey and prior.
  • Italy - May consumer confidence was 106.3, compared to 104.9 survey and 105.5 revised prior.


Company Ratings/News:
 

  • None.


Friday's Trade. On lower and below average NYSE volume, major U.S. equity indexes rallied through the pre-holiday session to close near intraday highs. The SPX and NYSE composite closed at new records. The SPX, DJI, Nasdaq, and NYSE composite closed up +0.42%, +0.38%, +0.76%, and +0.35%, respectively. The SPX, DJI, Nasdaq, and NYSE composite are now higher in 2014. Market breadth was positive, with gainers 2.23x losing stocks. All SPX market segments closed higher. Leaders were oil and gas, consumer services, and consumer goods, which rose at least +0.83%. Financials gained +0.83%. Laggards were basic materials, utilities, and telecommunications.

Other notable indexes rallied. The TRAN closed at another record, but the DJI closed -0.65% below its recent May 23rd record close. The Russell 2000 (RTY) rose +1.11%, and closed -6.82% below its March 4th record close. The Nasdaq Internet Index (QNET) rallied +1.58%, but remains in correction, -13.8% below its March 6th closing high. The Nasdaq Biotech Index (NBI) rose +0.24% and is in correction, down -14.2% from its recent February 25th record high.

NYSE volume fell -4.05% to 554.13 million shares, compared to 577.49 million shares the prior day, 0.81x the 681.58 million share 20-day moving average volume. Bond markets strengthened. The U.S. 10-year yield opened at 2.5553% and fell to a late session 2.5160% intraday low. On the session, the yield fell -1.79 bps to 2.5320%, compared to the 2.5499% prior close.

From its prior day 1900.53 SPX close, June 2014 SPX futures (SPM4) suggested a modestly higher open. In early trading, the index rose to 1894, then improved to 1899 by mid-session and rose to a late 1901.26 intraday high. The index closed at 1900.53, a new record close. The index closed +76.8% above the 1074.77 October 4, 2011, intraday low, the bottom of the most recent correction.

From its prior day 7,923.42 record close, the DJ Transportation index (TRAN) rose +0.80%, compared to the DJI's +0.38% gain. The TRAN opened higher and rose to 7,990 by late morning and set its 7,995.39 intraday high in mid-afternoon. The index closed at 7,986.58, its 3rd consecutive record close, though without a similar, DJI confirming record. Volume fell -1.22% to 8.083 million shares, compared to 8.807 million shares the prior session, and 0.77x the 15-day moving average volume. The TRAN closed +2.71% and +4.50% above its 20- and 50-day moving averages, and +6.60% and +11.6% above its respective 100- and 200-day moving averages.

Market volatility fell, as the CBOE SPX volatility index (VIX) closed at 11.36, compared to 12.03 at the prior close. In opened below 12.00 and trended lower through the session and ended at the intraday low. The VIX's all-time closing low is 9.31, on December 22, 1993. Its record high is 89.53 in December 2008. Its lifetime average is 20.01. The CBOE put/call SKEW rose +1.17% to 125.13, compared to 123.68 the prior session, above a neutral 115-120 range, but below 130, a level that correlates well with short-term market tops.

The market's technical factors were little changed. The SPX relative strength (RSI) improved to 59.06, compared to 56.34 the prior day, in a neutral range, but 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.

Last week, the SPX, DJI, Nasdaq, and NYSE composite closed up +1.21%, +0.70%, +2.33%, and +0.74%, respectively. The prior week, the Nasdaq closed up +0.46%, while the SPX, DJI, and NYSE composite closed down -0.03%, -0.55%, and -0.03%, respectively. In May, the SPX, DJI, Nasdaq, and NYSE composite are up +0.88%, +0.15%, +1.73%, and +0.51%, respectively. In April, the SPX, DJI, and NYSE composite closed up +0.62%, +0.75%, and +0.94%, respectively, while the Nasdaq closed off -2.01%.

In 2014, the SPX, DJI, Nasdaq, and NYSE composite are up +2.82%, +0.18%, +0.22%, and +2.71%, 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 lower and below average volume, the BKX rose +0.28% to 68.12, compared to 67.93 at the prior day's close, its 32nd consecutive close below 70.0, -6.57% below its 72.91 March 20th post-2008 closing high. In early trading, the index moved briefly lower to the 67.83 intraday low, but immediately reversed higher and rallied to a mid-morning 68.25 intraday high. The index traded narrowly around 68.10 through the close. Volume fell -7.55% to 31.903 million shares, compared to 34.507 million shares the prior day, and 0.79x the 40.334 million share 15-day moving average.

Large cap banks underperformed the regional banks, as the KBW regional banking index (KRX) rose +0.57%.

Last week, the BKX is up +1.96%, compared to a loss of -1.71% the prior week. In May, the BKX is down -0.45%, compared to April, when the BKX closed off -5.34%. In 2014, the BKX is down -1.65%, compared to the SPX's +2.82% gain. In 2013, the BKX rose +35.1%, better than the SPX's +29.6% rise.

The BKX is now +15.1% better than the June 24, 2013, 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 and then eased consistently to the May 15th 66.81 closing low, its lowest close since early February. The BKX closed +109.2% 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 +76.8% in the same period.

The BKX index closed -43.7% below its February 20, 2007, record 121.06 high. The BKX is up +265.8% from its 18.62 March 6, 2009, closing low, its low during the 2008-09 financial panic.

Technical indicators were little changed. The index closed +0.34% and -2.09% below its respective 20- and 50-day moving averages, and -1.75% and +1.39% below its respective 100- and 200-day moving average. The 20-day moving average fell -2 bps to 67.89. The 69.57 50-day moving average fell -4 bps. Its 100-day moving average fell -1 bp to 69.33, and the 200-day moving average rose +1 bps to 67.18. The 20-day closed (by -1.68 points) below the 50-day, and the negative gap widened -2 bps. The 50-day moving average closed (by +2.39 points) above the 200-day moving average, and the gap narrowed -5 bps. The 100-day moving average closed (by +2.15 points) above the 200-day moving average, and the gap fell -2 bps.

The directional movement indicator improved to -5.164, compared to -7.868 the prior day, its 33rd consecutive negative reading. Relative strength rose to 48.61, compared to 47.15 the prior day, in the middle of 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 was 31.08 on November 14, 2012, which is also the date of the BKX's 2012 closing low. Next resistance is 68.30; next support is 67.88.

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