Odds are for a sideways day; watch for break above 2400.50 and break below 2392.00 for change of fortunes
No Key economic data to be released
Markets Around The World
Markets in the East were mostly higher – Mumbai was down
European markets are mostly lower – U.K. is up
Dollar index and GBP/USD are lower; USD/JPY and EUR/USD are higher
Commodities are lower
10-yrs yield is at 2.276% down from May 23 close of 2.285%; 30-years is at 2.930% down from 2.945%
Key Levels:
Critical support levels for S&P 500 are 2387.21, 2379.56 and 2365.22
Critical resistance levels for S&P 500 are 2401.55, 2405.77 and 2408.52
Key levels for eMini futures: break above 2399.50, the high of 12:00 PM on May 23 and break below 2395.50, the low of 0:30 AM
Pre-Open
Pre-NYSE session open, futures price action is slightly to the upside – at 9:00 AM, S&P 500 futures were up by +1.00; Dow by +13.00; and NASDAQ by +10.50
On Tuesday, at 4:00 PM, S&P future (June contract) closed at 2397.50 and the index closed at 2398.42 – a spread of about 1.00 points; futures closed at 2398.00 for the day; the fair value is -0.50
Directional Bias Before Open
Weekly: Up
Daily: Side
120-Min: Up
30-Min: Up
The trend and patterns on various time frames for S&P 500 are:
Candlestick for the last week, Friday May 19, was a red candle with longer lower shadow than upper shadow
Last week’s pivot point 2382.38; R1=2412.03, R2=2435.43; S1=2358.98, S2=2329.33
A down week – second in last five weeks; fifth in last ten weeks
Broke above a down sloping flag (2378.36), which has bullish implications;
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
Another gap up open, though the day’s price action resulted in a doji
Formed a double top – March 1 high of 2400.98 and May 16 high of 2405.77; the intermediate low is 2322.25; a break below it will have a target near 2240.00 level
Falling back within the down sloping flag that it broke above on April 24; break below 2328.95 will nullify the pattern
Move above an up-sloping channel since December 27 still relevant
Above 20-day and 50-day EMA; above 100-day and 200-day
Last swing low 2263.62
Mostly sideways move since February 17 – high near 2400 and the lo near 2330
Uptrend under pressure
2-Hour (e-mini future)
Moving sideways since 10:00 AM on May 23;
Higher highs and higher lows since 4:00 AM on May 18; downtrend since 8:00 AM on May 16 – lower highs, lower lows – may be in danger of reversing
Filled the gap up open of April 23
Above rising 20-bar EMA and 50-bar EMA
30-Minute (e-mini future)
Moving sideways since 4:00 AM on May 23 – high 2399.50 and low of 2392.00
Up trend since 5:30 AM on May 18 – higher highs and higher lows
Above rising 50-bar EMA; just above 20-bar EMA
Previous Session
Major U.S. indices closed higher on Tuesday May 23. They are still off from the highs made April and May. Dao Jones Transportation Average reached higher than the high of May 17, the big down day. Russell 2000 is still below its high.
