Morning Notes – Tuesday November 15, 2016

Sunil Sharma

8 years ago

Directional Bias For The Day:

The futures are trending up
Symmetrical triangle on 30-minute chart
Odds are for a down day

Markets Around The World

Markets in the East were generally down – only Hong Kong was up
European markets are mixed – Germany, U.K, France and Spain are up; Italy and Switzerland are down
Dollar index, EUR/USD and USD/JPY are up; GBP/USD is down
Commodities are mixed – Crude, NastGas, gold and silver are up; copper is up

Key Levels:

Critical support levels for S&P 500 are 2156.08, 2152.49, and 2151.17
Critical resistance levels for S&P 500 are 2171.36, 2178.26 and 2181.30
Key levels for eMini futures: break above 2169.75, the 4:00 AM high, and break below 2161.50, the low of 7:30 AM

Pre-Open

Pre-NYSE session open, futures price action is to the upside – at 8:45 AM, S&P 500 futures were up by +5.25, Dow by +15.00 and NASDAQ by +29.75
On Monday, at 4:00 PM, S&P future (Dec contract) closed at 2160.25 and the index closed at 2164.20 – a spread of about 4.00 points; futures closed at 2160.50 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; recent price action may relieve the pressure for uptrend to resume; closer to uptrend resumption than reversal 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*	Above 100-day, 200-day, 50-day and 20-day SMA Down trend line broken to the upside; at the broken line from below, may act as a resistance Sequence of lower highs and lower lows broken but reverse sequence hasn’t started Price above EMA-10 since November 7; EMA-10 crossed above EMA-20
*2-Hour (e-mini future)*	Generally trending down after making a high of 2180.50 at 2:00 AM on November 10, near the high of September 22 A descending triangle is emerging At 20-bar EMA
*30-Minute (e-mini future)*	An emerging triangle – symmetrical or almost descending – near the high of 2180.50, highest since September 9; with the recent move to the upper limit

Previous Session

Major U.S. market indices were mixed on Monday. S&P 500 and NASDAQ Composite declined but Dow Jones Industrial Average and Russell 2000 gained.

Dow Jones Industrial Average and S&P 500 made doji candle with almost equal sized upper and lower shadows. Dow’s pattern came at the top of recent rally from November 4.