Directional Bias For The Day:
Futures are lower- Drifting lower since 3:30 PM on June 2
- Odds are for down to sideways day; watch for break above 2433.00 for change of fortunes
- Key economic data:
- JOLTS Jobs Openings (est. 5.65M) 10:00 AM
Markets Around The World
- Markets in the East closed mixed – Shanghai and Hong Kong closed up; Tokyo, Sydney and Mumbai were donw; Seoul was closed
- European markets are lower
- Dollar index, EUR/USD and USD/JPY are down; GBP/USD is up
- Commodities are mixed – crude oil and copper are lower; NatGas, gold and silver are up
- 10-yrs yield closed at 2.182% up from June 2 close of 2.159%; 30-years closed at 2.841% up from 2.813%
Key Levels:
- Critical support levels for S&P 500 are 2435.49, 2424.02 and 2413.54
- Critical resistance levels for S&P 500 are 2440.23, 2444.22 and 2451.67
- Key levels for eMini futures: break above 2433.00, the high of 4:30 AM and break below 2427.00, the low of 9:30 PM on June 2
Pre-Open
- Pre-NYSE session open, futures price action is to the downside – at 8:15 AM, S&P 500 futures were down by -6.50; Dow by -48.00; and NASDAQ by -12.75
- On Monday, at 4:00 PM, S&P future (June contract) closed at 2435.75 and the index closed at 2436.10 – a spread of about 0.75 points; futures closed at 2434.50 for the day; the fair value is +1.25
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:
| Monthly |
- Confirmed Uptrend
- Uptrend resumption since Feb 08, 2016 after a pull back of -15.2%
|
| Weekly: |
- 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 small red doji with very small upper and lower shadows
- 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) |
- Drifting down since 2:00 PM on June 2
- Mostly sideways to down since 8:00 PM on Jun 1
- Higher highs and higher lows since 4:00 AM on May 18;
- At or below flattening 20-bar EMA; above rising 50-bar EMA
|
| 30-Minute (e-mini future) |
- Broken below a symmetric triangle after June 5 NYSE session – 100% extension target is near 2422.50
- 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
- Below falling 50-bar EMA and at 20-bar EMA
|
Previous Session
Major U.S. indices closed down on Monday June 5. The day’s range was very small and most indices made doji candles. Russell 2000 opened near the high and closed near the lows.
Major U.S. indices closed down on Monday June 5. The day’s range was very small and most indices made doji candles. Russell 2000 opened near the high and closed near the lows.
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