OPTIONS: Larger FX Option Pipeline

Stocks off lows after nearly testing early session lows at midmorning, skittish trade as month-end portfolio rebalancing expected to draw better selling. SPX eminis currently trading +1.75 (0.04%) at 3990.25; DJIA -99.74 (-0.3%) at 32793.05; Nasdaq +24.7 (0.2%) at 11492.34.

• SPX leading/lagging sectors: Utilities (-0.75%), Consumer Staples (-0.63%) and Health Care (-0.48%) underperforming, the former weighed by electric and multi-utility shares (CEG -2.46%, SRE -1.64%, EXC -1.30%); pharmaceuticals and biotechs weighing on the latter (MRK -1.87%, LLY -1.54%, PFE -1.32%).
• Leaders: Real Estate (+.98%) lead by industrial and specialized REITs, Materials (+0.79%) and Communication Services (+0.59%) supported by interactive media/entertainment (META +2.96%, NFLX +0.50%).
• Dow Industrials Leaders/Laggers: American Express (AXP) +1.11 at 174.41, Nike (NKE) +0.78 at 119.31, Visa (V) +0.42 at 220.77. Laggers: Goldman Sachs (GS) -8.58 at 356.95, United Health (UNH) -7.52 at 475.50, Merck (MRK) -2.06 at 107.31.

• RES 4: 113-22 50-day EMA
• RES 3: 113-03 High Feb 15
• RES 2: 112-31+ 20-day EMA
• RES 1: 112-03 High Feb 24
• PRICE: 111-17 @ 16:08 GMT Feb 28
• SUP 1: 110-21 Low Feb 24
• SUP 2: 111-00 2.618 proj of the Jan 19 - Jan 30 - Feb 2 price swing
• SUP 3: 110-16 Lower 2.0% Bollinger Band
• SUP 4: 110-06 3.00 proj of the Jan 19 - Jan 30 - Feb 2 price swing

Treasury futures remain in a clear downtrend and price is trading close to its recent lows. Last week’s extension lower maintains the current bearish sequence of lower lows and lower highs. Potential is seen for a move towards the 111.00 handle next, a Fibonacci projection. Moving average studies are in a bear mode position, highlighting current market sentiment. Initial resistance is seen at 112-03, the Feb 24 high.