S&P 500 downward bias potential

October 21, 2016 11:08 AM

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The S&P 500 futures are down .4% today. Microsoft hit all time highs on its earnings but that has failed to boost the broader market. We would not be surprised to see a test of the 2100 level soon.

The U.S. 30-year bonds have recovered from a 7-point sell off and have found buyers below the 164 level. We are still watching the NZDUSD and believe this pair will recover and continue on its 2016 uptrend. This pair is around its 50% retracement level from the 10/13-1/20 rally.

WTI crude oil futures failed to get below $50 per barrel in overnight trade and is trading near unchanged levels. The recent strength continues to support this market.  Precious metals have struggled to find a serious bottom, and we think Palladium could be approaching a very important support area right below $600.

 

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