Near a resistance zone – prior support that was broken, and down trend nd 61.8% Fibonacci retracement level of the decline
Odds are for an up to sideways day – watch for break above 2563.00 and below 2456.25 for change of fortunes
Key economic data due:
Unemployment Claims (233K vs. 235K est.) at 8:30 AM
Pending Home Sales (est. 0.2%) at 10:00 AM
Markets Around The World
Markets in the East closed mostly higher – Hong Kong and Seoul were down
European markets are mostly higher – most are rising since 11:00 AM on October 25
Currencies:
Up
Down
Dollar index
USD/JPY
USD/CHF
USD/CAD
EUR/USD
GBP/USD
AUD/USD
NZD/USD
Commodities are mostly down
Up
Down
Crude Oil
Silver
Palladium
Sugar
Cocoa
NatGas
Gold
Copper
Platinum
Coffee
Cotton
10-yrs yield is at 2.432% down from October 25 close of 2.444%; 30-years is at 2.944% up from 2.955%
Key Levels:
Critical support levels for S&P 500 are 2553.34, 2544.00 and 2541.60
Critical resistance levels for S&P 500 are 2559.65, 2572.18 and 2578.29
Key levels for eMini futures: break above 2563.00, the high of 7:30 AM and break below 2556.25, the low of 5:30 AM
Pre-Open
On Wednesday, at 4:00 PM, S&P future (December contract) closed at 2554.75 and the index closed at 2557.15 – a spread of about 2.50 points; futures closed at 2558.50 for the day; the fair value is -3.75
Pre-NYSE session open, futures price action is to the upside – at 7:30 AM, S&P 500 futures were up by +3.25; Dow by +34.00; and NASDAQ by +9.25
Directional Bias Before Open
Weekly: Up
Daily: Up
120-Min: Up-to-Side
30-Min: Side-to-Down
The trend and patterns on various time frames for S&P 500 are:
A large green candle with small lower shadow and no upper shadow; breaking away from previous candle
Last week’s pivot point 2566.19; R1=2584.46, R2=2593.71; S1=2556.94, S2=2538.67; R1/R2 were breached
An up week – sixth in last five weeks; eight in last ten 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
Above 10-week EM; above 39-week SMA and 89-week SMA
Confirmed uptrend
Daily
A red candle; almost like a hammer; lower shadow is almost 1.5 times the real body with no upper shadow
Last pattern, a down-sloping flag in June that was broken to the upside on July 13, is re-asserted
Above 20-day EMA, which is above 50-day EMA; Above 100-day SMA and 200-day SMA
Pivot Point=2556.18; R1=2568.37, R2=2579.58; S1=2544.97, S2=2532.78; S1/S2/S3 were breached
Confirmed Uptrend
2-Hour (e-mini future)
Broke below the upper limit of a horizontal channel that was broken on October 19; bounced off the lower limit of the channel
Broke below the 50-bar EMA and now back near it
Sequence of lower highs and lower lows since 6:00 PM October 22
At/below flattening 20-bar EMA, which is at/below flattening 50-bar EMA
30-Minute (e-mini future)
Drifting up since the sharp decline on October 25 that breached the lower limit of a down sloping flag; near a resistance zone, which was a prior support, and trying the break above a down trend line since the high of 9:00 AM on October 23
Above flat 20-bar EMA, which is at/below flat 50-bar EMA
Previous Session
Major U.S. indices declined Wednesday October 25. However, most made a recovery during the final few minutes of the trading session resulting in near reversal candlestick patterns. S&P 500, NASDAQ Composite, Wilshire 5000 Total Market Index, Russell 2000 and Dow Jones Transportation Average made red hammer candles.
