The S&P 500 and the Dow dropped on Friday with banks leading the way after the U.S. Federal Reserve said it would not extend a temporary capital buffer relief put in place to ease a pandemic-driven stress in the funding market.

The S&P 500 bank stocks shed about 3% as the Fed's move means banks will have to resume holding an extra layer of loss-absorbing capital against US Treasuries and central bank deposits from next month.

Yield on US 10-year notes, which has risen sharply in the past seven weeks on growth expectations, hovered near a 14-month peak at US$1.742%.

Optimism over a US$1.9 trillion fiscal package and the Federal Reserve's promise to maintain its ultra-loose policy stance for years has accelerated a shift into economy-linked stocks, powering the S&P 500 and the Dow to record levels this week.

To subscribe to real time signal, email to us at futures.coin@gmail.com for details. Sign up today for March subscription.

Plan B : Short if market failed to support above 3898. Targets are 3875, 3844 and 3819.
 

U.S. stock futures were mixed early Monday morning as Wall Street looked to bounce back from a losing week.

The move in futures comes after the three major indexes lost ground last week. The Nasdaq Composite rose on Friday but still finished the week with a 0.8% loss. However, the Nasdaq is still about 6% below its Feb. 12 all-time closing high as technology and high-growth stocks have lost favor, with their valuations looking expensive with a jump in yields.

Optimism about the markets and the path of the U.S. economy has been growing as vaccines are rolling out across the country, with the pace of Americans getting shots climbing in recent weeks. 

On the economic data front, investors will get another look at the housing market on Monday when the National Association of Realtors releases existing home sales for February. Economists surveyed by Dow Jones are projecting a decline of 2.8%.

To subscribe to real time signal, email to us at futures.coin@gmail.com for details. Sign up today for March subscription.

Plan A : Long if market supported firm above 13053. Targets are 13089, 13123 and 13155.

Plan B : Short if market failed to support above 13053. Targets are 13015, 12975 and 12929.

To subscribe to real time signal, email to us at futures.coin@gmail.com for details. Sign up today for March subscription.

Plan A : Remain sell as long as oil price trades below 61.9. Targets are 60.6 and 59.9. 

Plan B : Consider long only if oil price able to trade firmly above 60.6. Targets are 61.7 and 62.3.