Retreating from a resistance zone around 2683.00 level
Odds are for an up day with good likelihood of sideways move from pre-open level – watch for break above 2683.00 and below 2677.00 for clarity
Key economic data due:
PPI ( 0.1% vs. 0.2% est.) at 8:30 AM
Core PPI ( 0.2% vs. 0.2% est.) at 8:30 AM
Markets Around The World
Markets in the East were mixed – Shanghai, Tokyo and Seoul were down; Hong Kong, Sydney and Mumbai were up
European markets are mixed – Germany, France and Switzerland are down; U.K. Spain, Italy and STOXX 600 are up
Currencies:
Up
Down
EUR/USD
GBP/USD
USD/JPY
AUD/USD
NZD/USD
USD/INR
Dollar index
USD/CHF
USD/CAD
Commodities:
Up
Down
Crude Oil
NatGas
Gold
Silver
Copper
Platinum
Palladium
Cotton
Sugar
Coffee
Cocoa
Bonds
10-yrs yield is at 3.006%, up from May 8 close of 2.969%;
30-years is at 3.158%, up from 3.125%
2-years yield is at 2.534%, up from 2.513%
The 10-Year-&-2-Year spread is at 0.472, up from 0.456
Key Levels:
Critical support levels for S&P 500 are 2655.20, 2637.14 and 2615.32
Critical resistance levels for S&P 500 are 2683.34, 2683.35 and 2698.79
Key levels for eMini futures: break above 2683.00, the high of 7:00 AM and break below 2677.00, the low of 4:00 AM
Pre-Open
On Tuesday, at 4:00 PM, S&P future (June contract) closed at 2670.25 and the index closed at 2672.63 – a spread of about -2.50 points; futures closed at 2670.00 for the day; the fair value is +0.50
Pre-NYSE session open, futures price action is to the upside – at 8:45 AM, S&P 500 futures were up by +8.75; Dow by +90.00; and NASDAQ by +14.50
Directional Bias Before Open
Weekly: Uptrend Under Pressure
Daily: Uptrend Under Pressure
120-Min: Side-Up
30-Min: Side
15-Min: Side-Up
6-Min: Up-Side
The trend and patterns on various time frames for S&P 500 are:
The week ending on May 4 was a small real body candlestick line with very small upper shadow and very long lower shadow
Last week’s pivot point=2646.99, R1=2699.35, R2=2735.29; S1=2611.05, S2=2558.69; S1/S2 pivot levels were breached;
A down week; third in last five weeks and sixth in last ten weeks
A symmetrical triangle pattern is emerging; price in the middle of the pattern
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 near 2687.41 is achieved; the 100% extension target is near 2913.13
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 near 2704.63 is achieved; the 261.8% extension target is near 3088.34
Last swing low, 2322.25, was the low on March 27, 2017; Last swing high, 2872.87, was during the week of January 22, 2-018; the low since the last swing high is 2532.69 during the week if February 5, 2018
Below 10-week EMA; at 39-week SMA and above 89-week SMA
Uptrend under pressure
Daily
A small doji candle with small upper but larger lower shadow at the 50-day EMA; the index recovered most of its day’s loss in the final hour trading and closed near the high
In the middle of the symmetrical triangle after breaking below it for a day
Above 20-day EMA; at 50-day EMA and 100-day SMA; above 200-day SMA
Uptrend under pressure
2-Hour (e-mini future)
Rising since 10:00 AM on May 3 in steps; near a resistance zone around 2683.00 level
Declining since 2:00 PM on May 7; break above the downtrend line from April 18 high continues
RSI-9 bounced off 40 and is above 65
Above 20-bar EMA, which is above EMA10 of EMA50
Bias: Side-Up
30-Minute (e-mini future)
At the upper limit of a horizontal channel – between 2658.00 and 2681.50 – emerging since 1:30 PM on May 4
RSI trending up after making a bullish divergence at 6:30 AM on May 8 near 30; retreating from 76.12 to 60
Above 20-bar EMA, which is above 50-bar EMA
Bias: Side
15-Minute (e-mini future)
Bollinger Band (20, 2.0) is mostly moving sideways from 4:000 PM on May 4;
The band is narrowed from 9:00 PM to 3:00 AM; expanded slightly after that; again narrowing since 8:00 AM
RSI mostly above 40 since 8:00 AM on May 8; fallen below 50 from a high of 77.4 at 4:45 AM
The Stochastic (9, 1, 3): %K declining in steps after making a bearish divergence above 90 at 5:45 AM
Bias: Side-Up
Previous Session
Major U.S. indices mostly advanced on Tuesday May 8 in mostly higher volume and increased volatility. The price action for the day was driven by the geo-politics and decision about Iran nuclear deal. Late in the day after 2:30 PM, the market rose from lows and closed near the highs. S&P 500 declined slightly and the volume on NASDAQ Composite declined. Mots indices made doji or near doji candlestick lines except Russell 200 and Dow Transportation Average.
