Moving up after sharp decline on September 5, since 1:00 PM
Another up-sloping flag, but steeper; a break below 2456.50 will be bearish
Odds are for an up to sideways day – watch for break below 2456.50 for a change of fortunes
Key economic data due:
Trade Balance (-43.7B vs. -44.6B est.) at 8:30 AM
Final Services PMI (est. 56.8) at 9:45 AM
ISM Non-Manufacturing PMI (est. 55.8) at 10:00 AM
Beige Book at 2:00 PM
Markets Around The World
Markets in the East closed mostly lower – Shanghai was up
European markets are mostly down – Germany and Italy are up; Most are climbing up after a gap down open
Currencies:
Up
Down
Dollar index
EUR/USD
GBP/USD
USD/JPY
USD/CHF
USD/CAD
AUDUSD
NZD/USD
Commodities are mostly up
Up
Down
Crude Oil
NatGas
Silver
Copper
Platinum
Palladium
Gold
Sugar
Coffee
Cotton
Cocoa
10-yrs yield closed at 2.070% on September 5 down from September 1 close of 2.157%; 30-years closed at 2.688% down from 2.768%
Key Levels:
Critical support levels for S&P 500 are 2446.55, 2439.03 and 2428.20
Critical resistance levels for S&P 500 are 2462.65, 2465.12 and 2471.97
Key levels for eMini futures: break above 2465.25, the low of 6:30 AM on September 5 and break below 2456.50, the low of 5:30 AM
Pre-Open
On Tuesday, at 4:00 PM, S&P future (September contract) closed at 2457.00 and the index closed at 2457.85 – a spread of about 1.00 points; futures closed at 2459.75 for the day; the fair value is -2.75
Pre-NYSE session open, futures price action is to the upside – at 8:30 AM, S&P 500 futures were up by +3.50; Dow by +39.00; and NASDAQ by +14.00
Directional Bias Before Open
Weekly: Up
Daily: Up-to-Side
120-Min: Side-to-up
30-Min: Side-to-Down
The trend and patterns on various time frames for S&P 500 are:
A large green body candle closing near the high for the week ending on Friday September 1; almost ten points below all time high of 2490.87 reached during the week ending on August 11
Last week’s pivot point 2461.71; R1=2495.22, R2=2513.89; S1=2443.04, S2=2409.53
An up week – second in a row and third in last five weeks; sixth in last ten weeks
R1 and R2 of previous week broken after two weeks; S1 and S2 have not been broken for he last two weeks
Broke above a down sloping flag (2378.36) on April 24, which has bullish implications; first target is near 2520.00 and the second target is near 2640.00
Broke above a down-sloping flag on November 14, 2016; first target of 2285.92 is achieved; second target is near 2467.50
Last swing low, 2322.25, was the low on March 27, 2017
Closed above 10-week EMA, 39-week SMA and 89-week SMA
Confirmed uptrend, though pulling back
Daily
A large red candle with no upper shadow and a lower shadow almost equal to the real body
At the down trend line from the high on August 8, which was broken to the upside on August 30
Last pattern, a down-sloping flag in June that was broken to the upside on July 13, is nullified when price broke below 2430.00; the index was below 2430.00 for only one day
At/above 20-day EMA, which is above 50-day EMA; Above 100-day SMA and 200-day SMA
S1/S2/S3 breached after not being tested for three days
Uptrend under pressure; mostly moving sideways since June 2 between 2490.00 and 2410.00
2-Hour (e-mini future)
Futures are climbing since September 5 12:00 PM low of 2445.50, which followed steep decline in previous two candles; near a resistance level
Lower highs and lower lows since 12:00 PM on September 1; sequence will break with a rise above 2471.25
At/below drooping 20-bar EMA, which is at/above flattening 50-bar EMA
30-Minute (e-mini future)
Mostly moving sideways since 4:30 PM on September 5;
Broken below an up-sloping flag; achieved first target, 100% extension, and the second, 138.2% extension
At/below drooping 50-bar EMA, which is below flat 20-bar EMA
Previous Session
Major U.S. indices closed lower on Tuesday September 5, a day after the Labor Day weekend. Indices gapped down at the open that did not fill during the day. Most are forming a 3-day evening star pattern.
Three S&P 500 sectors – Consumer Staples, Energy and Utility – were up on Tuesday.
