Directional Bias For The Day:
S&P Futures are lower; moving lower since 9:30 AM on May 22 in steps- Forming an up-sloping flag on 30-minute chart; a break below 2706.00 will be bearish
- Odds are for a down day with increased volatility – watch for break above 2716.00 for change of fortune
- Key economic data due:
- FOMC Meeting Minutes at 2:00 PM
Markets Around The World
- Markets in the East were mostly down – Seoul was up
- European markets are down
- Currencies:
| Up |
Down |
- Dollar index
- USD/CAD
- USD/INR
|
- EUR/USD
- GBP/USD
- USD/JPY
- USD/CHF
- AUD/USD
- NZD/USD
|
- Commodities:
| Up |
Down |
|
|
- Crude Oil
- Silver
- Copper
- Platinum
- Palladium
- Coffee
- Cotton
|
- Bonds
- 10-yrs yield is at 3.017%, down from May 22 close of 3.065%;
- 30-years is at 3.167%, down from 3.290%
- 2-years yield is at 2.556%, down from 2.591%
- The 10-Year-&-2-Year spread is at 0.461, down from 0.474
Key Levels:
- Critical support levels for S&P 500 are 2709.18, 2702.26 and 2693.17
- Critical resistance levels for S&P 500 are 2721.88, 2726.98 and 2731.29
- Key levels for eMini futures: break above 2711.00, the high of 8:00 AM and break below 2706.25, the low of 8:00 AM
Pre-Open
- On Wednesday, at 4:00 PM, S&P future (June contract) closed at 2725.00 and the index closed at 2724.44 – a spread of about -0.50 points; futures closed at 2726.00 for the day; the fair value is +1.00
- Pre-NYSE session open, futures price action is to the downside – at 9:00 AM, S&P 500 futures were down by -18.50; Dow by -187.00; and NASDAQ by -69.00
Directional Bias Before Open
- Weekly: Uptrend Under Pressure
- Daily: Uptrend resumed
- 120-Min: Up-Side
- 30-Min: Side-Down
- 15-Min: Down
- 6-Min: Down
The trend and patterns on various time frames for S&P 500 are:
| Monthly |
- Confirmed Uptrend
- December 2017 closed higher; index has been higher for the nine straight months; it has only one down month, March 2017, since October 2016
- Uptrend resumption since Feb 08, 2016 after a pull back of -15.2%
|
| Weekly: |
- The week ending on May 18 was a small red candlestick line with small lower shadow and smaller upper shadow just above the real body of previous week; breaking above a symmetrical triangle
- Last week’s pivot point=2718.99, R1=2736.08, R2=2759.18; S1=2695.89, S2=2678.80; No pivot levels were breached;
- A down week; third in last five weeks and sixth in last ten weeks
- A symmetrical triangle pattern is in the process of completion; price in breaking above it
- 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 bearish engulfing candle that engulfed the upper and lower shadows of Monday too
- Above 20-day EMA; at 50-day EMA and 100-day SMA; above 200-day SMA
- Uptrend resumes
|
| 2-Hour (e-mini future) |
- Retreated from the upper limit of a horizontal channel at 9:30 AM on May 22 near 2742.00; near the lower limit of the channel
- Uptrend since 10:00 AM on May 3 in steps; higher highs and higher lows;
- RSI-9 moved below 20 from above 70 at 9:30 AM on May 22
- Below 20-bar EMA, which is crossing below EMA10 of EMA50
- Bias: Up-Side
|
| 30-Minute (e-mini future) |
- Moving down since 9:30 AM on May 22; filled the up gap created on Sunday; At a support level – the low near 2708.75 made at 10:30 AM on Friday May 18
- RSI moved below 20 from above 70 at 6:30 AM on May 22
- Below 20-bar EMA, which is below 50-bar EMA
- Bias: Side-Down
|
| 15-Minute (e-mini future) |
- Bollinger Band (20, 2.0) is moving down since 2:30 PM on May 22
- The band narrowed from 2:00 AM to 3:00 AM; expanding since 3:00 AM
- RSI mostly moved below 50 since 9:45 AM on May 22 and mostly below 40 since 2:30 PM
- The Stochastic (9, 1, 3): %K crisscrossed %D around 20 from 3:00 AM to 6:00 AM; reached above 70 and is falling below it;
- Bias: Down
|
Previous Session
Major U.S. indices closed down on Tuesday May 22. The volume was lower than on Monday. The indices made bearish engulfing candlestick line but in most cases the up gap created on Monday is not filled yet.
| Up |
Down |
- Finance
- Utility
- Real Estate
|
- Consumer Discretionary
- Consumer Staples
- Energy
- Materials
- Industrials
- Technology
- Heath Care
- Telecom
|
Major U.S. indices closed down on Tuesday May 22. The volume was lower than on Monday. The indices made bearish engulfing candlestick line but in most cases the up gap created on Monday is not filled yet.
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