Good chance of following through on Monday’s gap-up open
Odds are for an up day; watch for break below 2371.50 for change of fortunes
Key Economic Data: S&P/CS Composite-20 HPI (5.9% vs. 5.7% est.) at 9:00 AM and CB Consumer confidence and New Home Sales at 10:00 AM
Markets Around The World
Markets in the East were up – Sydney was closed for the day
European markets are higher
Dollar index is down ; USD/JPY, GBP/USD and EUR/USD are up
Commodities are mostly down – copper is up
10-yrs yield is at 2.298% up from April 24 close of 2.273%; 30-years is at 2.951% up from 2.927%
Key Levels:
Critical support levels for S&P 500 are 2369.19, 2361.37 and 2347.99
Critical resistance levels for S&P 500 are 2378.36, 2390.01 and 2400.98
Key levels for eMini futures: break above 2376.75, the high of 6:00 AM on Monday and break below 2371.50, the low of 3:30 AM
Pre-Open
Pre-NYSE session open, futures price action is to the upside – at 9:00 AM, S&P 500 futures were up by +7.75, Dow by +153.00 and NASDAQ by +18.25
On Monday, at 4:00 PM, S&P future (June contract) closed at 2370.75 and the index closed at 2374.15 – a spread of about 3.50 points; futures closed at 2370.00 for the day; the fair value is +0.75
The trend and patterns on various time frames for S&P 500 are:
Candlestick for the last week, Friday April 21, was a small green candle, a harami with open and close within the body of previous large red candle
An up week – second in in last five weeks; sixth in last ten weeks
Forming a small down-sloping flag; break above 2378.36 will be bullish
Broke above a down-sloping flag on November 14, 2016; first target of 2285.92 and second target of 2363.14 are achieved
Last swing low, 2083.79, was the low on November 4, 2016
Above 39-week SMA and 89-week SMA
Confirmed uptrend, though pulling back
Daily
Gapped up at the open; gap was not filled; a small doji candle;
Broke above a down sloping flag; break above 2378.36 will be bullish; flag-pole high is 2400.98; the target will be near 2650
Uptrend under pressure; break above April 5 high of 2378.36 is critical for uptrend
Broke below a descending triangle on March 21; target near 2308.00 still active; rise above 2381.93 will nullify it
Move above an up-sloping channel since December 27 still relevant
Above 100-day, 200-day, 50-day SMA/EMA and 20-day EMA
Last swing low 2263.62
Uptrend under pressure
2-Hour (e-mini future)
Breaking above a resistance at 2375.00 after finding support at 2365.50 following the gap up at the Sunday open
The horizontal channel break target is near 2385.00, which is near the target from 30-minute pattern break
Uptrend since 8:00 PM on April 16; higher highs and higher lows
Within a range since March 21 – high 2378.75 and the low of 2327.25
Above rising 50-bar EMA and 20-bar EMA
30-Minute (e-mini future)
Broke above a symmetrical triangle at 8:00 AM; the target is near 2385.75
Broke above an ascending triangle at 6:00 PM on Sunday April 23; triangle height is 33.75 points and the break out point is 2356.50, giving a 100% extension target near 2390.00
Above rising 20-bar EMA and 50-bar EMA
Previous Session
Major U.S. indices gapped up at the open on Monday April 24 and stayed higher throughout the day. S&P 500 gained +25.46 but the total range during the NYSE session was only 7.79.
S&P 500 broke above a small down sloping flag, which is bullish in nature. Next resistances are at 2378.36 and 2400.98. The target of this patterns is near 2650.00, which is nearly 12% away. Dow Jones Industrial Average broke above a similar looking flag and its target is near 23450, which is near 13% away.
NASDAQ Composite broke above an ascending triangle. Its 100% extension target is near 6086.73. The bigger pattern target is near 6662, which is nearly 11% away from current levels.
