Morning Notes – Wednesday November 9, 2016

/ November 9, 2016

Directional Bias For The Day:

S&P 500 eMini Futures 9-Nov-16 (2-Hourly) 7:00 AM

  • The futures are sharply down
  • Odds are for a down day

Markets Around The World

  • Markets in the East were down
  • European markets are down
  • Dollar index, EUR/USD and USD/JPY are up; GBP/USD is down
  • Commodities are mixed – crude and NatGas are down; copper, gold and silver are up

Key Levels:

  • Key levels for eMini futures: break above 2116.00, the 8:00 AM high, and break below 2078.75, the low of 6:30 AM

Pre-Open

  • Pre-NYSE session open, futures price action is to the down side; at 8:30 AM, S&P 500 futures were down by -33.25, Dow by -277.00 and NASDAQ by -99.00
  • On Tuesday, at 4:00 PM, S&P future (Dec contract) closed at 2136.50 and the index closed at 2139.56 – a spread of about 4.00 points; futures closed at 2135.50 for the day

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

Monthly
  • Up trend since Feb 08, 2016
Weekly:
  • Current uptrend under pressure; need to rise above 2154.79 to relieve the pressure
  • Above an 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
  • Broke below a small bearish ABCD pattern with a downside target near 2105.30 (100% – met), 2076.77 (138.2%), 2067.96 (150%), 2059.14 (161.8%)
  • Broken below 2015 high, which was acting as a resistance
  • Crossed above 39-week SMA after falling below it; above 89-week SMA
Daily
  • At the 100-day SMA from below
  • Down trend – 1) broken below an uptrend line; 2) Lower high lower low; 3) turned back from the broken uptrend line on a bounce
  • Broke above November 4 high of 2099.07 marking a reversal
  • Bounced off 50-day EMA
  • Nearing the 61.8% Fibonacci retracement level of 2068.89
2-Hour (e-mini future)
  • Bouncing off from a decline to 2028.50 from a high of 2152.50
30-Minute (e-mini future)
  • Bouncing off after a sharp decline at 61.8% retracement level
  • Down trend

Previous Session

S&P 500 8-Nov-16U.S. markets advanced on Tuesday. Dow Transportation Average declined slightly.

 

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