S&P Futures are slightly down; moving up from the low of 2620.00 at 2:45 AM
At a resistance zone, which was prior support
Odds are for a sideways to down day – watch for break above 2628.00 and 2631.50
Key economic data due:
ADP Non-Farm Employment Change (190K vs. 189K est.) at 8:15 AM
Markets Around The World
Markets in the East closed down
European markets are mostly down – U.K. is up
Currencies:
Up
Down
Dollar index
USD/CHF
NZD/USD
EUR/USD
GBP/USD
USD/JPY
AUD/USD
USD/CAD
Commodities:
Up
Down
NatGas
Gold
Silver
Copper
Palladium
Cotton
Crude Oil
Platinum
Sugar
Coffee
Cocoa
10-yrs yield is at 2.331% up from December 5 close of 2.328%; 30-years is at 2.713% down from 2.732%
Key Levels:
Critical support levels for S&P 500 are 2621.96, 2614,35 and 2605.52
Critical resistance levels for S&P 500 are 2642.12, 2648.72 and 2657.48
Key levels for eMini futures: break above 2626.50, the high of 4:00 AM and break below 2622.00, the low of 5:00 AM
Pre-Open
On Tuesday, at 4:00 PM, S&P future (December contract) closed at 2629.00 and the index closed at 2629.57 – a spread of about 0.50 points; futures closed at 2628.25 for the day; the fair value is +0.75
Pre-NYSE session open, futures price action is to the downside – at 9:00 AM, S&P 500 futures were down by -0.50; Dow by -12.00; and NASDAQ by -14.25
Directional Bias Before Open
Weekly: Up
Daily: Up
120-Min: Up
30-Min: Side-to-Down
15-Min: Side-to-Down
The trend and patterns on various time frames for S&P 500 are:
The week ending on December 1 was a large green candle with almost no lower shadow and a small upper shadow
Last week’s pivot point 2632.94; R1=2667.02, R2=2691.81; S1=2608.15, S2=2574.07; R1/R2/R3 were breached
An up week; second in last five weeks and eight in last ten weeks
Broke above a down sloping flag on April 24 2017;
flag-low was 2322.25 during 27-Mar-17 week; shorter flag-pole length is 317.19 and longer flag-pole length is 590.88;
100% extension target of shorter flag-pole near 2639.41 is achieved; and the 161.8% extension target is near 2835.46
61.8% extension target of longer flag-pole is near 2687.41
Broke above a down-sloping flag on November 14, 2016;
the flag low was 2083.79 during 31-Oct-16 week; the shorter flag-pole length is 202.13 and the longer flag-pole length is 383.71;
261.8% extension target of shorter flag-pole near 2612.97 is achieved
the 161.8% extension target of longer flag-pole is near 2704.63
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 red candle with small lower shadow and larger upper shadow; a three-day evening star pattern
RSI-14 divergence – on October 20 the RSI was 79.65 and the 2578,29, on November 8 the high was 2595.47 and the RSI was 72.50; on November 30, RSI-14 was 76.67 and the index was at 2657.74
Last pattern, a down-sloping flag in June that was broken to the upside on July 13; in August the index declined and tested the broken upper limit of the flag
Above 20-day EMA but above 50-day EMA; Above 100-day SMA and 200-day SMA
Pivot Point=2635.34; R1=2642.95, R2=2656.33; S1=2621.96; S2=2614.35; S1 was breached
Confirmed Uptrend
2-Hour (e-mini future)
Drifting down after making a high of 2665.25 at 8:00 AM on December 4; at an uptrend line from the lows of November 15
14-bar RSI continues to flash divergence – on November 21 the future was at 2600.50 and the RSI was at 75.8, on Sunday the future was at 2603.50 and the RSI at 64.47; on December 4 the RSI-14 was 66.12 and the price was at 2665.25
Sequence of higher highs and higher lows since 10:00 AM on November 2 and since August 29 with few exceptions is reasserted on November 21; it is again under pressure
Below falling 20-bar EMA, which is below falling 50-bar EMA
30-Minute (e-mini future)
Below a down trend line from the high of December 4; next support is at 2605.00, the low on December 1
Below falling 20-bar EMA, which is below falling 50-bar EMA
15-Minute (e-mini future)
An ascending triangle is emerging and the future is at the upper limit a break above will have a target near 2632.00
Envelop and Bollinger Band are mostly moving down since December 4 with occasional sideways moves
The Bollinger Band has contracted and moving sideways since 2:45 AM
The Stochastic (9, 1, 3) reached 8.33 at 8:15 AM and is turning up
At 20-bar EMA, which is below 50-bar EMA
Previous Session
Major U.S. indices closed down on Tuesday December 5. Dow Jones Industrial Average, S&P 500, NYSE Composite and Wilshire 5000 Total Market Index completed a three-day evening star pattern. The Dow Jones Transportation Average made bearish engulfing. The three day price action of NASDAQ Composite and Russell 2000 indicate that Monday was a turning point.
