Directional Bias For The Day:

• S&P Futures are lower
• Moving mostly sideways-to-lower since the high of 2580.75 at 2:00 PM on October 27
• Odds are for a down to sideways day – watch for break above 2575.00 and below 2471.00 for change of fortunes
• Key economic data due:
  • Core PCE (0.1% vs. 0.1% est.) at 8:30 AM
  • Personal Spending (1.0% vs. 0.8% est.) at 8:30 AM

Markets Around The World

• Markets in the East closed mostly higher –  Shanghai and Hong Kong were down
• European markets are mostly higher – U.K. and Switzerland are down; Germany and France are mostly flat since the morning session on October 27; Spain and Switzerland are rising since the morning; Italy is mostly flat since the open
• Currencies:
  

  Up	Down
  EUR/USD GBP/USD USD/CHF USD/CAD	Dollar index USD/JPY AUD/USD NZD/USD

• Commodities are mostly down
  

  Up	Down
  Crude Oil NatGas Gold Palladium Sugar	Silver Copper Platinum Coffee Cotton Cocoa

• 10-yrs yield is at 2.388% down from October 27 close of 2.428%; 30-years is at 2.905% down from 2.936%

Key Levels:

• Critical support levels for S&P 500 are 2578.53, 2565.94 and 2559.80
• Critical resistance levels for S&P 500 are 2582.98, 2587.39 and 2593.70
• Key levels for eMini futures: break above 2575.00, the high of 4:30 AM and break below 2571.75, the low of 7:00 AM

Pre-Open

• On Friday, at 4:00 PM, S&P future (December contract) closed at 2578.75 and the index closed at 2580.07 – a spread of about 1.25 points; futures closed at 2578.50 for the day; the fair value is +0.25
• Pre-NYSE session open, futures price action is to the downside – at 9:00 AM, S&P 500 futures were down by -5.50; Dow by -63.00; and NASDAQ by -3.75

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:

Previous Session

Major U.S. indices advanced on Friday October 27. Dow Jones Industrial Average made a doji like pattern but others had larger green real body. S&P 500, NASDAQ Composite and Wilshire 5000 Total Market Index made all time highs.

For the week, indices closed mixed. Russell 2000, Dow Jones Transportation Average and NYSE Composite closed down for the week. S&P 500 made a near doji candle near the high for the week. Russell 200 and Wilshire 5000 Total Market Index also made near dojis.

• S&P 500 Sectors