Odds are for an up day; watch for break below 2427.00 for change of fortunes
Key economic data:
PPI (0.0% vs. est. 0.0%) at 8:30 AM
Core PPI (0.3% vs. 0.2%) at 8:30 AM
Markets Around The World
Markets in the East closed mostly higher – Tokyo closed down
European markets are higher
Dollar index is down; USD/JPY GBP/USD and EUR/USD are up
Commodities are down
10-yrs yield is at 2.216% up from June 12 close of 2.213%; 30-years is at 2.874% up from 2.868%
Key Levels:
Critical support levels for S&P 500 are 2420.45, 2415.70 and 2403.59
Critical resistance levels for S&P 500 are 2431.80, 2440.01 and 2446.20
Key levels for eMini futures: break above 2433.50, the high of 3:30 AM and break below 2427.00, the low of 8:00 PM on June 12
Pre-Open
Pre-NYSE session open, futures price action is to the upside – at 7:30 AM, S&P 500 futures were up by +4.00; Dow by +19.00; and NASDAQ by +9.00
On Monday, at 4:00 PM, S&P future (September contract) closed at 2426.75 and the index closed at 2429.39 – a spread of about 2.75 points; futures closed at 2426.50 for the day; the fair value is +0.25
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:
Candlestick for the last week, Friday June 9 was an almost doji with smaller upper shadow
Last week’s pivot point 2429.90; R1=2444.10, R2=2460.40; S1=2413.60, S2=2399.40
A down week – third 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
A near red doji candle with longer lower shadow and almost no upper shadow
Above a horizontal channel – high 2400.58 and low 2322.25 – 100% extension target near 2480.00
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)
Moved to the middle of a broadening pattern
Broken the sequence of higher highs and higher lows since 4:00 AM on May 18;
Above 20-bar EMA and 50-bar EMA
30-Minute (e-mini future)
Rising since 1:00 PM on June 12
Down trend since June 2; within a down sloping flag, which is breaking to the downside
Above rising 50-bar EMA and 20-bar EMA
Previous Session
Major U.S. indices closed down on Monday June 12 but the late day action was encouraging. Dow Jones Transportation Average made a bullish engulfing candle.
