Moving higher since 5:30 AM; broke above a resistance at 2558.25 – double top
Broke above a symmetrical triangle – first target near 2563.00 and second target is near 2568.00
Odds are for an up day – watch for break below 2558.50 for change of fortunes
Key economic data due:
Building Permits (1.22M vs. 1.25M est.) at 8:30 AM
Housing Starts (1.13M vs 1.18M est.) at 8:30 AM
Fed’s Beige Book at 2:00 PM
Markets Around The World
Markets in the East closed mostly higher – Seoul and Mumbai were down
European markets are mostly up – Spain is down
Currencies:
Up
Down
Dollar index
EUR/USD
USD/JPY
USD/CHF
GBP/USD
AUD/USD
NZD/USD
USD/CAD
Commodities are mostly down
Up
Down
Crude Oil
Palladium
Cocoa
NatGas
Gold
Silver
Copper
Platinum
Sugar
Coffee
Cotton
10-yrs yield closed at 2.332% on October 17 up from October 16 close of 2.298%; 30-years closed at 2.836% up from 2.803%
Key Levels:
Critical support levels for S&P 500 are 2554.78, 2552.26 and 2548.31
Critical resistance levels for S&P 500 are 2561.15, 2563.41 and 2567.36
Key levels for eMini futures: break above 2561.75, the high of 8:00 AM and break below 2558.50, the low of 6:00 AM
Pre-Open
On Tuesday, at 4:00 PM, S&P future (December contract) closed at 2557.25 and the index closed at 2559.36 – a spread of about 2.25 points; futures closed at 2557.00 for the day; the fair value is +0.25
Pre-NYSE session open, futures price action is to the upside – at 8:45 AM, S&P 500 futures were up by +4.00; Dow by +92.00; and NASDAQ by +3.75
Directional Bias Before Open
Weekly: Up
Daily: Up
120-Min: Up
30-Min: Up
The trend and patterns on various time frames for S&P 500 are:
Last week’s pivot point 2550.81; R1=2560.01, R2=2566.86; S1=2543.96, S2=2534.76; No levels were breached
An up week – fifth in last five weeks; seventh in last ten weeks
Broke above a down sloping flag (2378.36) on April 24, which has bullish implications; first target is near 2520.00 and the second target is near 2640.00
Broke above a down-sloping flag on November 14, 2016; first target of 2285.92 is achieved; second target is near 2467.50
Last swing low, 2322.25, was the low on March 27, 2017
Above 10-week EM; above 39-week SMA and 89-week SMA
Confirmed uptrend
Daily
A small green candle following that closed at the high
Last pattern, a down-sloping flag in June that was broken to the upside on July 13, is re-asserted
Above 20-day EMA, which is above 50-day EMA; Above 100-day SMA and 200-day SMA
Pivot Point=2557.92; R1=2561.15, R2=2562.94; S1=2556.13, S2=2552.90; No level was breached
Confirmed Uptrend
2-Hour (e-mini future)
Broken above a horizontal channel – nearly 12 points high – 100% extension target is near 2565.00 and the 161.8% is near 2573.00
Gradually drifting higher since 2:00 PM on October 9
Sequence of higher high and higher low since 12:00 PM September 5
Above rising 20-bar EMA, which is above rising 50-bar EMA
30-Minute (e-mini future)
Broken above a symmetrical triangle – high of 2557.75 and low of 2550.75; first up-break target is near 2563.00 and second is near 2568.00
Resumed a sequence of higher highs and higher lows since August 29 with few exceptions
Above rising 20-bar EMA, which is above a rising 50-bar EMA
Previous Session
Major U.S. indices closed mixed on Tuesday October 17. Dow Jones Industrial Average, S&P 500 and Wilshire 5000 Total Market Index closed higher. NASDAQ Composite, Dow Jones Transportation Average, Russell 2000 and NYSE Composite closed lower. The range was small and most made indecisive patterns.
