Directional Bias For The Day:
- The futures were little changed at 8:30 AM
- Intraday charts are showing mixed trend
- On Friday at 4:00 PM, S&P future (Sept contract) closed at 2185.50 and the index closed at 2186.48 – a spread of about 1.00 points
Key Levels:
- Critical support levels for S&P 500 are 218.02, 2175.10, and 2170.67
- Critical resistance levels for S&P 500 are 2186.23, 2187.94 and 2193.30
- Pre-NYSE session open, futures price action is indecisive. At 8:45 AM, S&P 500 futures was down by -1.25, Dow was unchanged and NASDAQ was up by +5.25
Economic Data:
| Report |
Current |
Est. |
Prev. |
| U.S. JOLTS Jobs Openings (10 AM) |
|
5.38M |
5.62M |
The trend and patterns on various time frames for S&P 500 are:
| Monthly |
- Up trend since Feb 08, 2016
|
| Weekly |
- Up trend since Feb 08, 2016 with one pullback; broke out of a 2-year trading range in July, 2016
- Last swing low, 1991.68, was reached on June 27, 2016
|
| Daily |
- First back-to-back up day since August 18
- Price continue the bounce off 20-day and 10-day EMAs following few days of indecisive action
- A rally and close above 2193.42 will nullify the abandoned baby top reversal formed on Aug 24
- 9-period RSI is showing a downtrend line; for rally to continue the down trend line needs to be broken
- Uptrend since June 28th with one pullback; last swing low 2147.58 on Aug 2
- Mostly sideways move since August 5
- 61.8% retracement from last low is 2116.59
|
| 2-Hour (e-mini future) |
- Made a higher high at 2:00 PM on September 6 confirming the uptrend since 10: AM low on September 1
- The pennant, which was forming on September 6, was whiplashed and then broken to the upside ;
- Previous pattern – a rectangle trading range – is morphing into a broadening pattern with horizontal upper limit
- Facing resistance at the spike of 10:00 AM bar on August 26 following Chair Yellen’s Jackson Hole speech and Vive-Chair Fischer’s comments
|
| 30-Minute (e-mini future) |
- Sequence of higher highs and higher lows since 11:00 AM on September 1
- Above a uptrend line from 11:00 AM September low
|
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