Mostly moving sideways since 12:00 PM on Wednesday
A narrow wedge is emerging on 15-minute charts; break above 2728.25 will have bullish implications and break below 2721.75 bearish
Odds are for sideways day with up-bias – watch for break above 2728.25 and break below 2721.75 for more clarity
Key economic data due:
Core PCE (0.2% vs. 0.1% est.) at 8:30 AM
Personal Spending (0.6% vs. 0.4% est.) at 8:30 AM
Unemployment Claims (221K vs. 228K est.) at 8:30 AM
Chicago PMI (est. 58.2) at 9:45 AM
Pending Home Sales (est. 0.4%) at 10:00 AM
Markets Around The World
Markets in the East were up
European markets are mostly up – Germany is down
Currencies:
Up
Down
EUR/USD
GBP/USD
USD/JPY
AUD/USD
NZD/USD
Dollar index
USD/CHF
USD/CAD
USD/INR
Commodities:
Up
Down
NatGas
Gold
Silver
Platinum
Palladium
Sugar
Coffee
Cotton
Crude Oil
Copper
Cocoa
Bonds
10-yrs yield closed at 2.842% on May 30, down from May 29 close of 2.768%;
30-years is at 3.014%, down from 2.968%
2-years yield is at 2.440%, down from 2.408%
The 10-Year-&-2-Year spread is at 0.434, down from 0.441
Key Levels:
Critical support levels for S&P 500 are 2721.10, 2702.43 and 2692.44
Critical resistance levels for S&P 500 are 2733.33, 2742.24 and 2750.64
Key levels for eMini futures: break above 2728.25, the high of 4:30 AM and break below 2718.00, the low of 6:00 PM on May 30
Pre-Open
On Wednesday, at 4:00 PM, S&P future (June contract) closed at 2724.25 and the index closed at 2724.01- a spread of about +0.25 points; futures closed at 2724.50 for the day; the fair value is -0.25
Pre-NYSE session open, futures price action is unchanged – at 7:45 AM, S&P 500 futures were up by +0.25; Dow down by -8.00; and NASDAQ up by+3.75
Directional Bias Before Open
Weekly: Uptrend Under Pressure
Daily: Uptrend resumed
120-Min: Side
30-Min: Side-Up
15-Min: Up-Side
6-Min: Side
The trend and patterns on various time frames for S&P 500 are:
The week ending on May 18 was a small red spinning top candlestick, which was also a harami candle just above the upper limit of a symmetrical triangle
Last week’s pivot point=2723.65, R1=2739.92, R2=2758.51; S1=2705.06, S2=2688.79; R1 pivot level was breached;
An up week; second in last five weeks and fifth 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 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 relatively large green candle that gapped up from the previous close but still opened within its real body; small upper shadow and no lower shadow; a three-day morning star pattern
Above 20-day EMA; above 50-day EMA and 100-day SMA; above 200-day SMA
Uptrend resumes
2-Hour (e-mini future)
Rose back into the horizontal channel that it broke below on May 29; near the middle of the range
RSI-9 made double bottom near 18.6 with price lower at second bottom at 12:00 PM on May 29; bounce up above 65
Above 20-bar EMA, which is crossing above EMA10 of EMA50
Bias: Side
30-Minute (e-mini future)
Made a double top near 2729.25 with an intermediate low of 2718.00; price near the middle of these two levels; a break above will have a target near 2741.00; a break below will have a target near 2707.00
RSI-9 above 40 since 3:30 PM on May 29; declined from a high of 77.43 at 2:00 PM on May 30 to a low of 49.28 by 6:00 AM; rising up since then
At/above 20-bar EMA, which is above 50-bar EMA
Bias: Side-Up
15-Minute (e-mini future)
Bollinger Band (20, 2.0) is moving sideways since 4:00 PM on May 30
The band narrowed since the close of NYSE session on Wednesday;
RSI mostly between 40 and 65 since 3:15 PM on May 29 with occasional move above 65; moving along 50 since 6:00 PM
The Stochastic (9, 1, 3): %K crossed above %D at 6:30 AM from below 30; above 50
Bias: Up-Side
Previous Session
Major U.S. indices closed higher on Wednesday May 30, regaining more than what was lost on Tuesday. The volume was higher across the board.
