TheStrategyLab.com Price Action Trading Support Forum

Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
wrbanalysis@gmail.com (24/7)
http://twitter.com/wrbtrader (24/7)


click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $290.00 dollars or +2.90 points, Emini ES ($ES_F) futures @ $125.00 dollars or +2.50 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $415.00 dollars

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab free chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips in ##TheStrategyLab chat room involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=149&t=2209


Also, posted below are direct links to information about my price action trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade and position trade. Simply, my trade method is applicable for position trading, swing trading and day trading.

##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) general volatility analysis involving WRB Analysis so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

Price Action Analysis via Advance WRB Analysis Tutorial Chapters @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718

Analysis -----> Trade Signals

Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support (answering your questions) prior to purchasing the Volatility Trading Report (VTR). All WRB Analysis Tutorial Chapters 1 - 12 are included in the purchase of the Volatility Trading Report (VTR).

Daily Trading Plan Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=277&t=2948 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions.

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Market Context Summaries

The below summaries by Bloomberg, Briefing, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action in many trading instruments I monitor during the trading day. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events, intermarket analysis (e.g. Forex EurUsd, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index futures) while using WRB Analysis from one trade to the next trade to give me the market context for price action trading before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.


click on the above image to view today's price action of key markets


4:10 pm: [BRIEFING.COM] The stock market charged higher to begin November with the Nasdaq Composite setting the pace. The tech-heavy index surged 1.5% while the S&P 500 (+1.2%) followed right behind.

Equity indices started the trading day on an inconspicuous note after the overnight session featured some mixed economic data. In China, October Manufacturing PMI missed expectations (49.8; expected 50.0) while final Caixin PMI improved to 48.3 from 47.6, but remained below 50.0, indicating continued contraction. Asian markets ended the day on a broadly lower note, but the investor sentiment improved after European participants joined the fray and the market was treated to mostly better than expected PMI readings from regional economies. The eurozone Manufacturing PMI improved to 52.3 from 52.0 (expected 52.0), helping lift European markets off their opening lows.

Once the U.S. session got going, an opening trot higher turned into a daylong charge paced by energy and biotechnology as both groups built on their October gains. Biotech names wasted no time, rallying from the opening bell to send the iShares Nasdaq Biotechnology ETF (IBB 338.06, +12.60) higher by 3.9%. For its part, the health care sector spiked 2.1%, but the group was overtaken by the energy sector (+2.4%) during the afternoon.

The energy sector charged higher with the likes of Chevron (CVX 94.96, +4.08) and ExxonMobil (XOM 85.28, +2.54) extending their post-earnings gains even as crude oil lost 1.0%, sliding to $46.12/bbl, despite little change in the Dollar Index.

While the final standing did not suggest any underlying weakness, most sectors did not fare nearly as well as energy and health care. To be fair, financials (+1.5%) and industrials (+1.2%) also displayed relative strength, but technology (+0.9%), consumer discretionary (+0.5%), and consumer staples (+0.6%) lagged.

The consumer staples sector was pressured by beverage names while Sysco (SYY 41.04, -0.21) lost 0.5% despite reporting a one-cent beat. Over on the discretionary side, apparel retailers struggled in the morning, but largely recovered during the afternoon. On a separate note, Chipotle Mexican Grill (CMG 624.00, -16.23) fell 2.5% amid news of an E. coli scare that prompted the closure of 43 stores in Oregon and Washington.

Unlike stocks, Treasuries slipped in the morning and maintained their losses into the afternoon. The 10-yr note settled on its low with the benchmark yield rising four basis points to 2.19%.

Today's participation was roughly in-line with average as more than 845 million shares changed hands at the NYSE floor.

Economic data was limited to Construction Spending and ISM:

September construction spending jumped 0.6% to a seasonally adjusted annual rate of $1.09 billion while the Briefing.com consensus expected an increase of 0.4%
The uptick in total spending flowed from a 0.6% increase in private construction and a 0.7% increase in public construction spending
The Institute for Supply Management (ISM) reported that the October ISM Index registered a 50.1 reading versus 50.2 in September while the Briefing.com consensus expected a downtick to 50.0
This was the lowest reading since May 2013, but there was some expansionary activity below the surface with new orders increasing to 52.9 from 50.1 while the production index rose to 52.9 from 51.8

Tomorrow's economic data will be limited to the 10:00 ET release of the Factory Orders report for September (Briefing.com consensus -0.9%).

Nasdaq Composite +8.3% YTD
S&P 500 +2.2% YTD
Dow Jones Industrial Average 0.0% YTD
Russell 2000 -1.5% YTD

3:40 pm: [BRIEFING.COM]

The dollar index recovered today, climbing higher off of this morning's lows, which helped weigh on commodities
Gold, silver and natural gas remained in the red during today's session
Dec gold ended -0.5% at $1135.90/oz, while Dec silver -0.9% at $15.40/oz
WTI crude oil slid into the red in afternoon trading and remained there for the rest of the day
Dec crude finished -1% at $46.12/barrel. Dec nat gas -2.6% at $2.26/MMBtu

3:00 pm:

[BRIEFING.COM] Equity indices have continued their rally uninterrupted with the S&P 500 (+1.2%) reclaiming the 2,100 level.

Investors received a few quarterly reports this morning, but more earnings await after the close with a few insurance and health care heavyweights headlining the list. AIG (AIG 63.99, +0.93), Allstate (ALL 61.79, -0.09), Community Health (CYH 28.39, +0.35), and Tenet Healthcare (THC 33.16, +1.79) will report their results this evening while tomorrow morning the focus will shift to Archer-Daniels (ADM 46.03, +0.38), Kellogg (K 70.33, -0.19), and Mosaic (MOS 34.63, +0.84) among others.

2:30 pm:

[BRIEFING.COM] The major averages have continued marching higher with the Nasdaq Composite (+1.3%) maintaining the lead.

The health care sector (+1.8%) remains well ahead of the broader market, but the energy space (+2.2%) has vaulted ahead of health care. The steady charge in energy is taking place despite weakness in crude oil with the energy component set to end the pit session lower by 1.0% at $46.14/bbl. Notably, Dow components Chevron (CVX 94.60, +3.72) and ExxonMobil (XOM 84.98, +2.24) hold respective gains of 4.1% and 2.7% after both reported better than expected earnings on Friday.

Elsewhere, Treasuries have held their ground since morning action with the 10-yr yield up two basis points at 2.17%.

1:55 pm:

[BRIEFING.COM] Equity indices continue holding solid gains with the Nasdaq Composite (+1.1%) trading ahead of the S&P 500 (+0.8%).

This morning featured the release of just two economic reports-September Construction Spending (+0.6%; Briefing.com consensus 0.4%) and October ISM Index (consensus 50.0)-and things will remain relatively quiet on the data front until Friday's release of the Employment Situation report for October.

Last month's report was an all-around disappointment, but the market rallied in the wake of the release, considering it increased the chances that the first rate hike would remain on hold past the October FOMC meeting. Now the attention will shift to the Nonfarm Payrolls report for October with the Briefing.com consensus expecting a reading of 181,000 to follow last month's 142,000.

1:30 pm:

[BRIEFING.COM] The major U.S. indices continue to sport strong gains to kick off November.

A look inside the Dow Jones Industrial Average shows that Chevron (CVX 94.17, +3.29), Pfizer (PFE 34.95, +1.13), and Exxon Mobil (XOM 84.68, +1.94) are outperforming. Pfizer is benefiting from a bullish Barron's write-up this weekend, while Chevron and Exxon Mobil are higher amid broad strength in the energy sector.

Conversely, Visa (V 75.01, -2.57) is the worst-performing Dow component after after reporting mixed quarterly results and announcing it would acquire Visa Europe for up to EUR 21.2 bln. Visa further stated it expects Q1 to be in-line with Q4 and authorized a new $5 bln repurchase program.

Taking into account today's gains, the DJIA is now down just 0.3% year-to-date.



12:55 pm:

[BRIEFING.COM] The major averages have climbed through the first half of the Monday affair with the Nasdaq Composite setting the pace. The tech-heavy index has climbed 1.0% while the S&P 500 (+0.8%) and Dow Jones Industrial Average (+0.6%) follow not far behind.

Equities started the day on a slightly higher note to follow a quiet overnight session; however, biotechnology was off to the races from the start and that rally has continued into the afternoon with the iShares Nasdaq Biotechnology ETF (IBB 335.67, +10.21) trading higher by 3.1% at this juncture. That considerable strength has powered a rally in the Nasdaq, overshadowing a more modest performance from the technology sector (+0.5%). For its part, the health care sector trades higher by 1.9%, holding posture well ahead of the remaining eight sectors.

Similar to health care, the financial sector (+1.0%) has shown strength from the start while energy (+1.5%) has been able to overcome a 1.1% decline in crude oil, which hovers near $46.08/bbl.

Elsewhere among cyclical sectors, the consumer discretionary space (+0.1%) has not been able to join the rally due to weakness among apparel names. However, their losses have been offset by gains in homebuilder and media stocks. Also of note, Chipotle Mexican Grill (CMG 625.00, -15.23) has surrendered 2.4% amid news of an E. Coli scare that has prompted the closure of 43 stores in Oregon and Washington.

Today's advance in stocks has been accompanied by a slow retreat in the Treasury market with the 10-yr yield up three basis points at 2.18%.

Economic data was limited to Construction Spending and ISM:

September construction spending jumped 0.6% to a seasonally adjusted annual rate of $1.09 billion while the Briefing.com consensus expected an increase of 0.4%
The uptick in total spending flowed from a 0.6% increase in private construction and a 0.7% increase in public construction spending
The Institute for Supply Management (ISM) reported that the October ISM Index registered a 50.1 reading versus 50.2 in September while the Briefing.com consensus expected a downtick to 50.0
This was the lowest reading since May 2013, but there was some expansionary activity below the surface with new orders increasing to 52.9 from 50.1 while the production index rose to 52.9 from 51.8

12:25 pm:

[BRIEFING.COM] The tech-heavy Nasdaq (+1.0%) has inched higher while the S&P 500 (+0.7%) remains a bit below its late-morning high.

Biotechnology remains the chief reason behind the outperformance in the Nasdaq while the remaining sectors hold slimmer gains, which explains why the S&P 500 has not been able to ascend to new highs along the Nasdaq. That being said, the 0.7% gain in the benchmark index is nothing to scoff at considering today's pre-market action hinted at a rather subdued session.

On the downside, the utilities sector (-0.5%) is the only group trading in the red at this juncture while consumer discretionary and consumer staples remain just above their flat lines.

11:55 am:

[BRIEFING.COM] Recent action saw the Nasdaq Composite (+0.9%) notch a fresh session high thanks to the continued strength in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 336.55, +11.09) is now up 3.4% with top components like Amgen (AMGN 162.44, +4.25), Celgene (CELG 127.39, +4.69), and Gilead Sciences (GILD 109.83, +1.70) showing gains between 1.6% and 3.8%. Meanwhile, the broader health care sector has extended its gain to 2.0%.

Unlike health care, the remaining sectors show gains of no more than 0.9% with energy sector (+0.9%) rallying despite a 1.3% decline in crude oil, which has slid 1.3% to $45.99/bbl. Elsewhere, Treasuries remain near their lows with the 10-yr yield up almost three basis points at 2.18%.

11:30 am:

[BRIEFING.COM] Equity indices remain near their recent levels after briefly rising to new session highs. The Nasdaq Composite (+0.8%) remains in the lead while the S&P 500 (+0.6%) follows not far behind.

The solid gains in the key indices have masked some underlying weakness in utilities (-0.4%) and the two consumer sectors. The discretionary space (-0.1%) has been pressured by retailers while homebuilders and media names have offset much of that weakness. Also of note, Chipotle Mexican Grill (CMG 625.00, -15.23) has surrendered 2.4% amid news of an E. Coli scare in the Northwest that has prompted the closure of 43 stores in Oregon and Washington.

Chipotle's industry peers trade in mixed fashion with McDonald's (MCD 111.38, -0.88) down 0.8% and YUM! Brands (YUM 71.63, +0.72) up 1.0%.

10:55 am:

[BRIEFING.COM] The major averages hover near their best levels of the session with the S&P 500 (+0.6%) trading a bit behind the Nasdaq Composite (+0.7%).

The tech-heavy Nasdaq has stayed ahead of the broader market despite some softness in the technology sector (+0.3%); however, biotechnology has built on its early strength with the iShares Nasdaq Biotechnology ETF (IBB 335.13, +9.67) surging 3.0%. Meanwhile, the health care sector (+1.8%) has extended the lead over its peers, which has masked relative weakness in consumer staples (unch), consumer discretionary (-0.1%), and utilities (-0.4%).

Elsewhere, Treasuries have slid to new lows with the 10-yr yield now up four basis points at 2.19%.

10:35 am: [BRIEFING.COM]

The dollar index has traded lower all session, extending losses in early trade to near the 96.93 level- before seeing a modest bounce back toward the unchanged mark
Relatively balanced commentary by this weekend ECB President Mario Draghi and weak manufacturing data out of China were primary drivers of action this morning
The Chinese Purchasing Managers index came in at 49.8 (vs. 50 expected)- marking 8 straight months of factory declines
The index is now modestly negative at -0.2% to 96.80
Oil sold off in early trade despite the dollar's weakness,amidst reports that Russian oil-production in October hit recent record-levels (near 10.8 mln barrels)
WTI bottomed near $45.60/barrel before the open of pit-trading, but has since seen a strong rally back to losses -0.5% at $49.31/barrel
Natural gas has once again gotten crushed, and is currently -2.6% to $2.26/MMBtu
Gold and silver have seen heavy selling this morning- seeing very little support from the dollar- despite solid US economic data and a last week's Fed commentary
US data out this morning showed slightly stronger-than-expected manufacturing activity and in-line construction spending for the months of October and September
Precious metals are now near their LoD, with gold at -0.7% to $1134/oz and silver at -1.6% to $15.32/oz
Copper is trending at moderate losses following the China data (benefiting partially from positive export figures), currently -0.3% to $2.31/lb

10:00 am:

[BRIEFING.COM] The S&P 500 trades higher by 0.5%.

Just released, the ISM Index for October indicated a decline to 50.1 from 50.2 while the Briefing.com consensus expected a downtick to 50.0.

Separately, construction spending increased 0.6% month-over-month in September while the Briefing.com consensus expected an increase of 0.4%.

9:40 am:

[BRIEFING.COM] The major averages have climbed out of the gate with most sectors taking part in the opening rally. The S&P 500 trades higher by 0.4% with health care (+1.1%) setting the early pace. Biotechnology has contributed to that early strength, evidenced by the iShares Nasdaq Biotechnology ETF (IBB 329.62, +4.16), which trades higher by 1.3%.

Elsewhere, energy and technology trade near their flat lines with the energy sector trying to overcome a 0.9% decline in crude oil, which has slipped to $46.17/bbl despite a modest decline in the Dollar Index (-0.2%).

Treasuries remain near their lows with the 10-yr yield up two basis points at 2.17%.

September Construction Spending (Briefing.com consensus 0.4%) and the October ISM Index (consensus 50.0) will both be reported at 10:00 ET.

9:13 am: [BRIEFING.COM] S&P futures vs fair value: +5.30. Nasdaq futures vs fair value: +18.40.

The stock market is on track for a modestly higher open with S&P 500 futures trading five points above fair value. Index futures have climbed to highs not long ago after spending the early morning near their flat lines.

Investors have received some economic data to start the month. In China, October Manufacturing PMI missed expectations (49.8; expected 50.0) while final Caixin PMI improved to 48.3 from 47.6, but remained below 50.0, indicating continued contraction. Asian markets ended the day on a broadly lower note, but the overall sentiment improved after European markets opened and investors were treated to mostly better than expected PMI readings from regional economies. The eurozone Manufacturing PMI improved to 52.3 from 52.0 (expected 52.0), helping lift European markets off their opening lows.

Domestically, economic data will be limited to the 10:00 ET release of September Construction Spending (Briefing.com consensus 0.4%) and the October ISM Index (consensus 50.0).

On the corporate front, Visa (V 74.99, -2.59) is on track to open lower by 3.3% after reporting a one-cent miss on in-line revenue. Also of note, the company authorized a new $5 billion share repurchase program.

Treasuries hover near their lows with the 10-yr yield up three basis points at 2.18%.

8:55 am: [BRIEFING.COM] S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +16.60.

The S&P 500 futures trade four points above fair value.

The bulk of the Asian markets ended trading lower, with much of the weakness in stemmed out of China (Shanghai -1.7%) and notably in response to the official state released October Chinese Manufacturing PMI figure, which came in under expectations at 49.8 (vs 50.0e). The state economist cited weakness in the domestic economy as well as seeing a drop in demand for both imports and exports. On a more positive note, the Caixin Final PMI came in above its preliminary reading, with a figure of 48.3 (up from the 47.6). Over in Japan, the Nikkei dropped over 2% today, after continued strength in the yen seemed to weigh on shares. Japan's Manufacturing PMI beat expectations, and likely gave traders less optimism of further stimulus, particularly after the BOJ refrained from easing last week.

In economic data:
China's October Manufacturing PMI 49.8 (expected 50.0), Final Caixin PMI 48.3 (prior 47.6)
Japan's September Final PMI 52.4 (prior 52.5)
South Korea's October Trade Balance $6.70 billion (expected $7.10 billion) and October PMI 49.1 (prior 49.2)

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Japan's Nikkei declined 2.1%. The Nikkei was partly victim of the stronger yen, which began rising shortly after Nikkei closed on Friday. The release of the latest PMI survey did little to inspire investors to assume the Bank of Japan would alter its stance after leaving its monetary policy unchanged. Corporate earnings also lent a hand in the Nikkei's demise, with Mitsubishi Heavy Industries losing 3.0% after missing estimates and Takeda Pharmaceutical (-1.4%) after releasing qurterly results after the market was closed on Firday
Hong Kong's Hang Seng declined 1.2% and finished at its lows in a seesaw session. Trading in the afternoon was accented by a steady downtrend in the market, with losses in the financial and energy groups weighing. Bucking the trend of the broader market were some of the gaming names with Wynn Macau, up +3.7% and Galaxy Entertainment Group adding+1.1% after the Macau October casino revenue indicated the slowest decline since the beginning of the year
China's Shanghai Composite declined 1.7%, seeing the bulk of the weakness after the PMI was released. China Southern Airlines dropped 2% on the day after releasing its 9-month results. Likewise, Chongqing Changan Automobile fell 1% after the company also released its latest quarterly update.

Major European indices trade mostly higher while UK's FTSE (-0.3%) lags amid weakness in miners following the disappointing data from China. Meanwhile, other regional indices started lower, but have climbed through the first half of the session thanks to better than expected data.

Participants received several data points:
Eurozone October Manufacturing PMI 52.3 (expected 51.6; prior 51.6)
Germany's October Manufacturing PMI 52.1 (consensus 51.6; last 51.6)
France's October Manufacturing PMI 50.6 (expected 50.7; last 50.7)
UK's October Manufacturing PMI 55.5 (consensus 51.3; previous 51.8)
Italy's October Manufacturing PMI 54.1 (expected 53.0; prior 52.7)
Spain's October Manufacturing PMI 51.3 (consensus 52.0; previous 51.7)
Swiss September Retail Sales +0.2% year-over-year (consensus 0.2%; prior -0.6%) and October SVME PMI 50.7 (consensus 50.2; last 49.5)

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Germany's DAX is higher by 0.7% with all but two components trading in the green. Commerzbank has paced the rally, surging 7.6%, in reaction to better than expected results and an increased prospect of a dividend hike. Deutsche Bank follows, trading higher by 2.0%. On the downside, Adidas and Merck are both down close to 0.3% apiece.
France's CAC trades up 0.4% with Renault in the lead. The automaker has climbed 3.1% while Peugeot is higher by 0.4%. Financials Credit Agricole and Societe Generale outperform with respective gains of 1.8% and 1.3% while retailer Kering is the weakest performer, down 0.8%.
UK's FTSE has given up 0.3% amid weakness in mining stocks. Anglo American, Antofagasta, BHP Billiton, Rio Tinto, and Randgold Resources are down between 1.4% and 2.2%. On the upside, financials Barclays, Royal Bank of Scotland, and Lloyds Banking show gains between 1.1% and 1.4%.

8:27 am: [BRIEFING.COM] S&P futures vs fair value: +2.50. Nasdaq futures vs fair value: +12.60.

U.S. equity futures remain above their flat lines to continue what has been a very quiet pre-market session. Overnight, investors received some disappointing economic data from China (October Manufacturing PMI 49.8 [expected 50.0] and final Caixin PMI 48.3 [prior 47.6]), but better than expected PMI readings from Europe (eurozone manufacturing PMI 52.3 [expected 52.0]) have largely offset the negative sentiment, leaving S&P futures little changed.

Unlike futures, the Dollar Index (96.81, -0.19) has inched lower in recent action with the dollar surrendering 0.3% to the euro (1.1035). That being said, the greenback has held its ground against the yen (120.57) so far this morning.

7:57 am: [BRIEFING.COM] S&P futures vs fair value: +1.30. Nasdaq futures vs fair value: +9.30.

U.S. equity futures trade little changed amid generally upbeat action overseas. The S&P 500 futures hover within two points of fair value.

Meanwhile, Treasuries have retreated, pushing the 10-yr yield higher by almost three basis points to 2.18%.

Today's economic data will be limited to the 10:00 ET release of the September Construction Spending report (Briefing.com consensus 0.4%) and the October ISM Index (consensus 50.0).

In U.S. corporate news of note:

Visa (V 76.40, -1.18): -1.5% after reporting a one-cent miss on in-line revenue. Also of note, the company authorized a new $5 billion share repurchase program.
Cardinal Health (CAH 80.00, -2.20): -2.7% despite beating earnings/revenue estimates and raising its guidance.

Reviewing overnight developments:

Asian markets ended lower. Japan's Nikkei -2.1%, China's Shanghai Composite -1.7%, and Hong Kong's Hang Seng -1.2%
In economic data:
China's October Manufacturing PMI 49.8 (expected 50.0), Final Caixin PMI 48.3 (prior 47.6)
Japan's September Final PMI 52.4 (prior 52.5)
South Korea's October Trade Balance $6.70 billion (expected $7.10 billion) and October PMI 49.1 (prior 49.2)
In news:
China's Premier Li Keqiang spoke over the weekend, saying that 6.5% GDP growth would be sufficient for China to achieve its targets

Major European indices trade mostly higher. Germany's DAX +0.9%, France's CAC +0.4%, and UK's FTSE -0.4%. Elsewhere, Italy's MIB +0.5% and Spain's IBEX +0.7%
Participants received several data points:
Eurozone October Manufacturing PMI 52.3 (expected 51.6; prior 51.6)
Germany's October Manufacturing PMI 52.1 (consensus 51.6; last 51.6)
France's October Manufacturing PMI 50.6 (expected 50.7; last 50.7)
UK's October Manufacturing PMI 55.5 (consensus 51.3; previous 51.8)
Italy's October Manufacturing PMI 54.1 (expected 53.0; prior 52.7)
Spain's October Manufacturing PMI 51.3 (consensus 52.0; previous 51.7)
Swiss September Retail Sales +0.2% year-over-year (consensus 0.2%; prior -0.6%) and October SVME PMI 50.7 (consensus 50.2; last 49.5)
Among news of note:
European equities struggled in the early going after the release of disappointing data from China, but sentiment improved after most European PMI readings came in ahead of expectations

5:52 am: [BRIEFING.COM] S&P futures vs fair value: +1.30. Nasdaq futures vs fair value: +7.60.

5:51 am: [BRIEFING.COM] Nikkei...18683.24...-399.90...-2.10%. Hang Seng...22370.04...-270.00...-1.20%.

5:51 am: [BRIEFING.COM] FTSE...6341.33...-19.80...-0.30%. DAX...10921.91...+71.80...+0.70%.

Special thanks to Bloomberg, Briefing, Reuters and Yahoo! Finance for their market summaries.

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader @ http://stocktwits.com/wrbtrader

http://www.thestrategylab.com
Phone: +1 708 572-4885
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