Directional Bias For The Day:
Futures are lower- Drifting lower since 2:00 PM on May 1; below a downtrend line
- Trading near the lower limit of a descending triangle on 30-min time frame
- Odds are for a down day within a range; watch for break above 2388.75
- Key economic data:
- ADP Non-Farm Employment – 177K vs. 178K est. – at 8:30 AM
- ISM Non-Manufacturing PMI at 10:00 AM
- FOMC Statement and Fed Funds Rate – at 2:00 PM
Markets Around The World
- Markets in the East closed lower – Hong Kong, Tokyo and Seoul were closed
- European markets are mixed – Germany, U.K., France, Italy and STOXX 600 are lower Spain and Switzerland are higher
- Dollar index and USD/JPY are higher; GBP/USD and EUR/USD are lower
- Commodities are mixed – crude oil and NatGas are higher; gold silver and copper are down
- 10-yrs yield is at 2.291% down from May 2 close of 2.296%; 30-years is at 2.962% down from 2.982%
Key Levels:
- Critical support levels for S&P 500 are 2381.15, 2376.17 and 2369.19
- Critical resistance levels for S&P 500 are 2393.68, 2398.16 and 2400.98
- Key levels for eMini futures: break above 2387.25, the high of 4:00 PM on May 2, and break below 2381.00, the low of 6:00 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 -3.50; Dow down by -16.00; and NASDAQ down by -12.00
- On Tuesday, at 4:00 PM, S&P future (June contract) closed at 2386.75 and the index closed at 2391.17 – a spread of about 4.50 points; futures closed at 2385.75 for the day; the fair value is +1.00
The trend and patterns on various time frames for S&P 500 are:
Monthly |
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Weekly: |
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Daily |
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2-Hour (e-mini future) |
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30-Minute (e-mini future) |
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Previous Session
Price pattern for most indices was indecisive and their chart patterns, for most, did not change materially from Monday. Russell 2000 made a bearish engulfing and DJT opened in the muddle of Monday’s body but closed higher. The levels that were critical on Monday remain so except for NASDAQ. The critical support for DJIA is 2909.38 and for S&P 500 it is 2381.15.