Drifting up since 4:30 PM on October 23; new leg since 4:30 AM
Odds are for an up to sideways day – watch for break below 2462.50 for change of fortunes
No key economic data due
Markets Around The World
Markets in the East closed mostly higher – Hong Kong was down
European markets are mostly higher – Switzerland and STOXX 600 are down
Currencies:
Up
Down
EUR/USD
USD/JPY
USD/CHF
USD/CAD
Dollar index
GBP/USD
AUD/USD
NZD/USD
Commodities are mostly down
Up
Down
Crude Oil
Copper
Palladium
Sugar
Coffee
NatGas
Gold
Silver
Platinum
Cotton
Cocoa
10-yrs yield is at 2.410% up from October 23 close of 2.376%; 30-years is at 2.928% up from 2.890%
Key Levels:
Critical support levels for S&P 500 are 2564.33, 2558.14 and 2547.92
Critical resistance levels for S&P 500 are 2572.23, 2574.75 and 2578.29
Key levels for eMini futures: break above 2569.75, the low of 3:30 PM on October 20 and break below 2562.50, the low of 4:30 AM
Pre-Open
On Monday, at 4:00 PM, S&P future (December contract) closed at 2563.50 and the index closed at 2564.98 – a spread of about 2.50 points; futures closed at 2563.50 for the day; the fair value is 0.00
Pre-NYSE session open, futures price action is to the upside – at 9:00 AM, S&P 500 futures were up by +4.50; Dow by +141.00; and NASDAQ by +15.25
Directional Bias Before Open
Weekly: Up
Daily: Up
120-Min: Up-to-Side
30-Min: Up-to-Side
The trend and patterns on various time frames for S&P 500 are:
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 bearish engulfing candle; first down day after six days; only second down day in last ten days
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=2569.20; R1=2574.07, R2=2583.16; S1=2560.11, S2=2555.24; R1/S1/S2 were breached
Confirmed Uptrend
2-Hour (e-mini future)
Declined from a high of 2577.25 to a low of 2561.50 by the end of NYSE session on October 23; since then drifting up
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
At flattening 20-bar EMA, which is above flattening 50-bar EMA
30-Minute (e-mini future)
Made a double top at 5:30 AM on October 23; broke below the intermediate low and achieved 200% extension target
Drifting up since 4:30 PM on October 23
Above recently rising 20-bar EMA, which is below recently rising 50-bar EMA
Previous Session
Major U.S. indices declined on Monday October 23 after gapping up at the open. S&P 500, NASDAQ Composite, Russell 2000, NYSE Composite and Wilshire 5000 Total Market Index made bearish engulfing candle with almost no upper and lower shadows. Dow Jones Industrial Average and Dow Jones Transportation Average made Dark Cloud Cover candlestick patter, with no upper and lower shadows.
