Directional Bias For The Day:
S&P Futures are higher; declining since 6:00 AM after making a bearish engulfing candlestick line on 30-minute chart- Odds are for a sideways to down day – watch for break above 2750.25 and below 2742.00 for clarity
- Key economic data due:
- ISM Non-Manufacturing PMI (est. 54.2) at 10:00 AM
Markets Around The World
- Markets in the East were mostly up – Sydney and Mumbai were down
- European markets are mostly up – U.K. and Switzerland are down
- Currencies:
| Up |
Down |
- Dollar index
- GBP/USD
- USD/CAD
- USD/INR
|
- EUR/USD
- USD/JPY
- USD/CHF
- AUD/USD
- NZD/USD
|
- Commodities:
| Up |
Down |
|
|
- Crude Oil
- NatGas
- Gold
- Silver
- Platinum
- Palladium
- Coffee
- Cotton
- Cocoa
|
- Bonds
- 10-yrs yield closed at 2.937% on June 4, up from June 1 close of 2.895%;
- 30-years is at 3.084%, up from 3.046%
- 2-years yield is at 2.496%, up from 2.440%
- The 10-Year-&-2-Year spread is at 0.485, up from 0.455
Key Levels:
- Critical support levels for S&P 500 are 2740.54, 2728.74 and 2718.70
- Critical resistance levels for S&P 500 are2750.64, 2761.85 and 2777.11
- Key levels for eMini futures: break above 2750.25, the high of 7:00 AM and break below 2742.00, the low of 3:00 AM
Pre-Open
- On Monday, at 4:00 PM, S&P future (June contract) closed at 2746.75 and the index closed at 2746.87- a spread of about +0.00 points; futures closed at 2745.50 for the day; the fair value is +1.25
- Pre-NYSE session open, futures price action is changed to up – at 8:15 AM, S&P 500 futures were up by +3.75; Dow by +34.00; and NASDAQ by +15.25
Directional Bias Before Open
- Weekly: Uptrend Under Pressure
- Daily: Uptrend resumed
- 120-Min: Side-Up
- 30-Min: Up
- 15-Min: Up-Side
- 6-Min: Up-Side
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 June 1 was a bullish engulfing
- Last week’s pivot point=2716.12, R1=2755.43, R2=2776.24; S1=2695.31, S2=2656.00; S1/S2 pivot levels were breached;
- An up week; third in last five weeks and sixth 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
- Above 10-week EMA; above 39-week SMA and above 89-week SMA
- Uptrend under pressure
|
Daily
|
- A small green candle that gapped up at the open and the gap was not filled; small upper shadow and no lower shadow;
- Above 20-day EMA; above 50-day EMA and 100-day SMA; above 200-day SMA
- Uptrend resumes
|
| 2-Hour (e-mini future) |
- Breaking above the upper limit of a horizontal channel that it broke below on May 29; within a long term resistance zone between 2745.00 and 2765.00
- Higher highs and higher lows since 2:00 PM on May 29
- RSI-9 moving along 65 since 10:00 AM on June 1
- Above 20-bar EMA, which is above EMA10 of EMA50
- Bias: Side-Up
|
| 30-Minute (e-mini future) |
- Above an uptrend line since 3:00 PM on May 29; moving higher in an upsloping channel
- RSI-9 is mostly above 40 since 3:30 PM on May 29; moving along or above 65 since 3:00 AM
- Above 20-bar EMA, which is above 50-bar EMA
- Bias: Up
|
| 15-Minute (e-mini future) |
- Bollinger Band (20, 2.0) is moving sideways with an up bias since 8:45 AM on June 4
- The band was narrow from midnight to 3:00 AM; expanding since then
- RSI mostly between 40 and 65 since 4:30 PM on May 31
- The Stochastic (9, 1, 3): %K crossed above %D at 6:45 AM near 30;
- Bias: Up-Side
|
Previous Session
Most major U.S. indices closed higher on Monday June 4. Dow Jones Transportation Average declined. The volume was mixed. It was higher for Dow Jones Industrial Average and DJT but lower for S&P 500, NASDAQ Composite and Russell 2000.
| Up |
Down |
- Consumer Discretionary
- Consumer Staples
- Materials
- Finance
- Technology
- Heath Care
- Real Estate
- Telecom
|
- Energy
- Industrials
- Utility
|
Most major U.S. indices closed higher on Monday June 4. Dow Jones Transportation Average declined. The volume was mixed. It was higher for Dow Jones Industrial Average and DJT but lower for S&P 500, NASDAQ Composite and Russell 2000.
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