Moving mostly sideways since 4:00 PM on September 5
A symmetrical triangle is emerging on 30-minute chart with price near the upper limit; a break up would have a target near 2480.00 level
A horizontal channel is forming on 6-minute chart – high of 2467.25 and low of 2464.75 – price near the lower limit; break below will have target near 2461.00, which would be near the lower limit of the symmetrical triangle on 30-minute chart
Odds are for a sideways to an up day – watch for break below 2460.00 for a change of fortunes
Key economic data due:
Unemployment Claims (298K vs. 245k est.) at 8:30 AM
Revised Nonfarm Productivity (1.5% vs. 1.3% est.) at 8:30 AM
Revised Unit Labor Costs (0.2% vs. 0.3%) at 8:30 AM
IBD/TIPP Economic Optimism (est. 53.1) at 10:00 AM
Markets Around The World
Markets in the East closed mostly higher – Shanghai and Hong Kong were down; most trended down during the day
European markets are higher; Most are trending up after the open with a pullback since 6:00 AM
Currencies:
Up
Down
EUR/USD
GBP/USD
AUDUSD
NZD/USD
Dollar index
USD/JPY
USD/CHF
USD/CAD
Commodities are mostly up
Up
Down
NatGas
Gold
Silver
Palladium
Crude Oil
Copper
Platinum
Sugar
Coffee
Cotton
Cocoa
10-yrs yield closed at 2.108% on September 6 up from September 5 close of 2.070%; 30-years closed at 2.724% down from 2.688%
Key Levels:
Critical support levels for S&P 500 are 2459.20, 2452.82 and 2446.55
Critical resistance levels for S&P 500 are 2471.97, 2480.38 and 2490.87
Key levels for eMini futures: break above 2469.00, the high of 4:00 PM on September 6 and break below 2460.00, the low of 3:30 AM
Pre-Open
On Wednesday, at 4:00 PM, S&P future (September contract) closed at 2465.25 and the index closed at 2465.54 – a spread of about 0.50 points; futures closed at 2465.50 for the day; the fair value is -0.25
Pre-NYSE session open, futures price action is little changed – at 7:30 AM, S&P 500 futures were down by -0.25; Dow down by -12.00; and NASDAQ up by +1.75
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 small red harami candle, almost a doji, with lower shadow smaller than upper shadow; indecisive day;
Bouncing off 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
Above 20-day EMA, which is above 50-day EMA; Above 100-day SMA and 200-day SMA
None of the support or resistance levels were breached
Uptrend under pressure; mostly moving sideways since June 2 between 2490.00 and 2410.00
2-Hour (e-mini future)
Not much change from Wednesday’s pre-open price action
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
Above flat 20-bar EMA, which is at/above flat 50-bar EMA
Previous Session
Major U.S. indices closed higher on Wednesday September 6. Dow Jones Industrial Average, S&P 500 and NASDAQ Composite closed below the open. Most made a harami candle pattern, almost like a doji, with lower shadow smaller than upper shadows. Day’s range was small. Dow Transportation Average made a piercing candle.
Only one S&P 500 sector – Utility – was down Wednesday.
