Directional Bias For The Day:
S&P Futures are higher- Drifting sideways since 8:00 PM on October 22 after rising at the week’s open
- Odds are for an up to sideways day – watch for break below 2472.00 for change of fortunes
- No key economic data due
Markets Around The World
- Markets in the East closed mostly higher – Hong Kong and Sydney closed down
- European markets are mostly higher – Spain is down
- Currencies:
| Up |
Down |
- Dollar index
- USD/JPY
- USD/CHF
- NZD/USD
- USD/CAD
|
|
- Commodities are mostly down
| Up |
Down |
- Crude Oil
- NatGas
- Copper
- Sugar
- Coffee
- Cotton
- Cocoa
|
- Gold
- Silver
- Platinum
- Palladium
|
- 10-yrs yield is at 2.381% unch. from October 20 close of 2.381%; 30-years is at 2.895% up from 2.894%
Key Levels:
- Critical support levels for S&P 500 are 2572.23, 2567.56 and 2558.14
- Critical resistance levels for S&P 500 are 2577.91, 2580.62 and 2585.79
- Key levels for eMini futures: break above 2577.25, the high of 7:30 PM on October 22 and break below 2572.00, the low of 3:30 AM
Pre-Open
- On Friday, at 4:00 PM, S&P future (December contract) closed at 2572.75 and the index closed at 2575.21 – a spread of about 2.50 points; futures closed at 2574.00 for the day; the fair value is -1.25
- Pre-NYSE session open, futures price action is to the upside – at 9:00 AM, S&P 500 futures were up by +2.50; Dow by +36.00; and NASDAQ by +11.50
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:
| Monthly |
- Confirmed Uptrend
- Uptrend resumption since Feb 08, 2016 after a pull back of -15.2%
|
| Weekly: |
- A large green candle with small lower shadow and no upper shadow; breaking away from previous candle
- Last week’s pivot point 2566.19; R1=2584.46, R2=2593.71; S1=2556.94, S2=2538.67; R1/R2 were breached
- An up week – sixth in last five weeks; eight 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 green candle that gapped up at the open and closed higher; no upper shadow and short lower shadow;
- 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=2572.74; R1=2577.91, R2=2580.62; S1=2570.03, S2=2564.86; R1/R2 were breached
- Confirmed Uptrend
|
| 2-Hour (e-mini future) |
- Opened the week with a green candle – high of 2577.25 at 6:00 PM on Sunday was tested by the high of 2577.00 at 4:00 AM
- Rose above the 50-bar EMA after closing below it for the first time since 10:00 PM on September 26; five bars closed below it
- Sequence of higher high and higher low since 12:00 PM September 5 was broken but again reasserted
- Above rising 20-bar EMA, which is above rising 50-bar EMA
|
| 30-Minute (e-mini future) |
- At 4:30 AM broke above a down-sloping flag that was formed from the high of 2577.25 at 7:30 PM on October 22
- Rose during 5:30 AM candle; since then moving sideways with down bias
- Above rising 20-bar EMA, which is above rising 50-bar EMA
|
Previous Session
Major U.S. indices gapped up at the open and closed higher on Friday October 20. Most made all time highs. Russell 2000 and Dow Jones Transportation Average did not.
| Up |
Down |
- Consumer Discretionary
- Energy
- Materials
- Industrials
- Finance
- Technology
- Utility
- Heath Care
- Real Estate
|
- Consumer Staples
|
Major U.S. indices gapped up at the open and closed higher on Friday October 20. Most made all time highs. Russell 2000 and Dow Jones Transportation Average did not.
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