Market Morning Huddle – Flight to Safety Continues – 9 Feb 2016

News Driver: U.S. stock index futures were lower on Tuesday. Investors continue to move to safer assets (flight to safety) amid increasing concerns of a sustained slowdown in global economic growth. Global markets were lower, led by a fall in European bank stocks.

S&P Futures: -1.1%
Nasdaq Futures: -1.5%
Dow Futures: -1.1%
Oil Futures: -0.8%

Today’s action is a WEAK FORM RISK OFF (higher risk assets being sold with money flows to defensive assets) that has better odds of the S&P 500 holding above 1,850-1,842 (support) into the close.

2016-02-09_spx-futures

S&P 500: Pre-market the S&P 500 held flat to yesterday’s close until 6:30am EST then dropped down to intraday support yesterday -0.75%; currently down -1%. The Momentum indices are leading to the down-side (under-performing) with the Nasdaq –1.25% and the Russell 2K -1.45%.

TSX: under-perform into the open likely breaking support of 12,547-12,497 If you’re holding positions in the TSX be prepared for a re-trace to support of 12,345-12,300 -1.9% away

Bonds/Gold: Long duration bonds are dislocated and expensive relative to equities but still holding with TLT flat (+0.1%) to yesterday’s close (this adds to the weak-form risk-off tone, a strong bid to TLT would lean to strong-form). Gold was down -1% earlier this morning but now presents as flat to yesterday’s close, it is clearly decelerating under resistance of $1,202.5-$1,197. Gold is extended and more likely to pullback – wait for confirmation on the chart.

Oil: $29.50 (8:56am): Levels to watch are $29.38 support. Crude Oil was attempting a positive move earlier this morning but is currently down -1% at $29.50 below key support of $31.15-$30.50 which is now resistance.

Economic Calendar: API Weekly Crude Stock released at 4:35pm EST

For a review of the rest of today’s economic data visit the economic calendar here.

Earnings: Todays stock to watch are Disney $DIS, Coca Cola $KO and CVS Health Corp $CVS

For a complete list of today’s earnings visit the earnings page on our site.

About the Author Dave Gagne

Founder of MarketInsidersClub.com. President and CEO Dynamic Wealth Financial Inc. Author of Trading Master Plan Subscribe to the MarketInsidersClub Youtube Page here

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