Odds are for sideways day; watch for break above 2439.75 and break below 2433.00 for change of fortunes
Key economic data:
Revised Non-Farm Productivity (0.0% vs. est. -0.6%) at 8:30 AM
ISM Non-Manufacturing PMI (est. 57.1) at 10:00 AM
Markets Around The World
Markets in the East closed mostly down – Mumbai was up
European markets are mostly lower – Germany and Switzerland are closed
Dollar index, GBP/USD and USD/JPY are up; EUR/USD is down
Commodities are mixed – crude oil, NatGas and copper are lower; gold and silver are up
10-yrs yield is at 2.178% up from June 2 close of 2.159%; 30-years is at 2.835% up from 2.813%
Key Levels:
Critical support levels for S&P 500 are 2431.11, 2424.02 and 2413.54
Critical resistance levels for S&P 500 are 2443.63, 2448.19 and 2456.15
Key levels for eMini futures: break above 2439.75, the high of 3:30 PM on June 2 and break below 2433.00, the low of 8:00 PM on June 4
Pre-Open
Pre-NYSE session open, futures price action is to the downside – at 8:45 AM, S&P 500 futures were down by -2.50; Dow by -19.00; and NASDAQ by -6.00
On Friday, at 4:00 PM, S&P future (June contract) closed at 2437.25 and the index closed at 2439.07 – a spread of about 1.75 points; futures closed at 2437.75 for the day; the fair value is -0.50
Directional Bias Before Open
Weekly: Up
Daily: Up
120-Min: Side
30-Min: Side
The trend and patterns on various time frames for S&P 500 are:
Candlestick for the last week, Friday June 2 was a large green candle with almost no upper shadow and very small lower shadow
Last week’s pivot point 2427.63; R1=2451.67, R2=2464.27; S1=2415.03, S2=2390.99
Second up week in a row – third in last five weeks; sixth 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
A large green candle that closed near the high for the day; small lower shadow
Above a horizontal channel – high 2400.58 and low 2322.25 – 100% extension target near 2480.00
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 resumed
2-Hour (e-mini future)
Within a narrow trading range since 12:00 PM on Jun 2
Uptrend resumed following the break out from the narrow range at 10:00 AM on June 1
Higher highs and higher lows since 4:00 AM on May 18;
Above rising 20-bar EMA and 50-bar EMA
30-Minute (e-mini future)
Within a narrow trading range since 111:30 AM on Jun 2 – high of 2439.75 and low of 2433.00
Broke above an ascending triangle at 11:30 AM on June 1 – high=2417.75, low =2406.50 – 100% extension target and 161.8% extension target achieved
Up trend since 5:30 AM on May 18 – higher highs and higher lows – about to make first lower low
At or above rising 50-bar EMA and at 20-bar EMA
Previous Session
Major U.S. indices closed higher on Friday June 2. Most closed near the high for the day with very small upper and lower shadows. Dow Jones Transportation average and Russell 2000 closed below the mid point.
