S&P Futures are higher from previous day’s close, which was higher than the NYSE session close
An up-sloping flag is emerging on 30-minute chart; a break below 2680.00 will be bearish with a target near 2530.00
Odds are for a bounce with elevated volatility – watch for break above 2617.00 and break below 2580.00 for a change of fortunes
Resistance between 2640-2645
No Key economic data due:
Markets Around The World
Markets in the East closed sharply down
European markets are down
Currencies:
Up
Down
Dollar index
EUR/USD
USD/JPY
USD/CHF
AUD/USD
NZD/USD
USD/CAD
GBP/USD
Commodities:
Up
Down
Palladium
Sugar
Coffee
Cotton
Crude Oil
NatGas
Gold
Silver
Copper
Platinum
Cocoa
Bonds
10-yrs yield is at 2.842%, down from February 8 close of 2.851%;
30-years closed at 3.147%, down from 3.137%
2-years yield is at 2.118%, up from 2.117%
The 10-Year-&-2-Year spread is at 0.724 down from 0.734
Key Levels:
Critical support levels for S&P 500 are 2577.62, 2557.45 and 2544.00
Critical resistance levels for S&P 500 are 2616.11, 2634.35 and 2650.73
Key levels for eMini futures: break above 2617.00, the high of 3:00 AM and break below 2580.50, the low of 7:30 AM
Pre-Open
On Thursday, at 4:00 PM, S&P future (March contract) closed at 2578.25 and the index closed at 2581.00 – a spread of about -2.75 points; futures closed at 2593.50 for the day; the fair value is -15.25
Pre-NYSE session open, futures price action is to the upside – at 8:45 AM, S&P 500 futures were up by +16.75; Dow by +122.00; and NASDAQ by +51.25
Directional Bias Before Open
Weekly: Up
Daily: Uptrend Under Pressure
120-Min: Down
30-Min: Down
15-Min: Down-Side
6-Min: Down-Side
The trend and patterns on various time frames for S&P 500 are:
The week ending on February 2 was a bearish engulfing candle, with a very large decline, -3.9%
Last week’s pivot point 2797.57 R1=2835.18 R2=2908.22; S1=2724.53, S2=2686.92; S1/S2/S3 were breached;
A down week; first in last five weeks and second 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
Above 10-week EM; above 39-week SMA and 89-week SMA
Confirmed uptrend
Daily
Uptrend under pressure; in correction territory – more than 10% below the recent high
Three day evening star candlestick pattern
The 38.2% Fibonacci retracement from the lows of February 2016 is near 2465.50; the 38.2% Fibonacci retracement from October 2016 lows is near 2570.00 and the index low on Thursday was 2580.56
Last big pattern, a down-sloping flag in June 2017, was broken to the upside on July 13, 2017; in August the index declined and tested the broken upper limit of the flag; since then the index has made three very small flags; it broke to the upside of the last flag on January 2
Below 50-day EMA and 100-day SMA but above 200-day SMA
2-Hour (e-mini future)
Bounce from the low of 2529.00 on February 5 turned down from the resistance of EMA10 of EMA50 at 2726.75; 61.2% of the bounce has been retraced on February 8
RSI-9 falling below 20 after rising up to 65
Sequence of higher highs and higher lows since August 29, 2017 is broken
Below 20-bar EMA, which is below EMA10 of EMA50
Bias: Down
30-Minute (e-mini future)
Irregular H&S pattern completed; target near 2526.00, which is also near the lows reached on ; break below 2645.00 will complete the pattern and break above 2700.00 will nullify it
An up-sloping flag is breaking down
RSI-14 is below 65 since 12:30 PM on February 7; rising from 22.95 but found resistance at 50
Below 20-bar EMA which is below 50-bar EMA
Bias: Down
15-Minute (e-mini future)
Bollinger Band (20, 2.0) is moving sideways since 10:15 PM on February 5 after moving down on February 8
The band contracted during the Asian session and is expanding now with price hugging the lower band
RSI is between 20 and 50 since 9:45 on February 8
The Stochastic (9, 1, 3): %K bouncing off 0 at 7:15 AM but is in a downtrend since 3:35 AM
Bias: Down-Side
Previous Session
Major U.S. indices closed sharply lower on Thursday February 8. Indices completed a three-day evening star patterns and nullified Tuesday’s pricing candle. Indices are nearing 200-Day SMA.
