Directional Bias For The Day:

• The futures are slightly higher after regaining the break above a resistance
• Odds are for a sideways than a trend day with price feeling up pressure
• On Tuesday at 4:00 PM, S&P future closed at 2185.00 and the index closed at 2186.90 – a spread of about 2.00 points

Key Levels:

• Critical support levels for S&P 500 are 2183.17, 2175.13, and 2178.04
• Critical resistance levels for S&P 500 are 2189.56, 2193.42 and 2197.90
• Pre-NYSE session open, futures price action is slightly to the upside; at 8:00 AM, S&P 500 future was up by +1.25, Dow was up by +8 and NASDAQ was up by +4.25

Economic Data:

• U.S. Existing Sales at 10:00 AM – estimated=5.52M; previous=5.57M

The trend and patterns on various time frames for S&P 500 are:

Before NYSE Session Open

Major U.S. indices open the day with a gap and reached the day’s high in the first hour of trading and then trade lower. Dow Jones Industrial Average gave most of its gap whereas S&P 500 and NASDAQ have not filled the gap. All three closed near the lows for the day. Russell 2000 did not follow this pattern and had a better outcome that others.

On Tuesday:

Asian Session

Asian bourses were mixed on Wednesday:

European Session

In pre-US session, the European stock markets are mostly higher at 8:30 AM and are near the highs reached at 4:00 AM EST. Most opened with a gap-down following an up Tuesday.

Currencies

Commodities

Yields

• U.S. Treasury yields are down for the day so far
• 30-year yield is down by -0.3 basis points to 2.233% and 10-year is down by -0.5 basis points to 1.548%

Pivot Levels:

S&P 500 is above its 10-D EMA, 10-D EMA is above 20-D EMA and its 20-D EMA is trending above 50-D EMA since March 9, 2016.

Note: The probability of a level breaking is shown above is for the current condition when the price is above 20-D EMA, 10-D EMA is above 20-D EMA and 20-D EMA is above 50-D EMA. R2 break chance comes in picture only when R1 is broken. So are the probabilities calculated for R3, S2 and S3