S&P Futures are lower; moving lower since 9:30 AM on May 22 in steps
Forming an up-sloping flag on 30-minute chart; a break below 2706.00 will be bearish
Odds are for a down day with increased volatility – watch for break above 2716.00 for change of fortune
Key economic data due:
FOMC Meeting Minutes at 2:00 PM
Markets Around The World
Markets in the East were mostly down – Seoul was up
European markets are down
Currencies:
Up
Down
Dollar index
USD/CAD
USD/INR
EUR/USD
GBP/USD
USD/JPY
USD/CHF
AUD/USD
NZD/USD
Commodities:
Up
Down
NatGas
Gold
Sugar
Cocoa
Crude Oil
Silver
Copper
Platinum
Palladium
Coffee
Cotton
Bonds
10-yrs yield is at 3.017%, down from May 22 close of 3.065%;
30-years is at 3.167%, down from 3.290%
2-years yield is at 2.556%, down from 2.591%
The 10-Year-&-2-Year spread is at 0.461, down from 0.474
Key Levels:
Critical support levels for S&P 500 are 2709.18, 2702.26 and 2693.17
Critical resistance levels for S&P 500 are 2721.88, 2726.98 and 2731.29
Key levels for eMini futures: break above 2711.00, the high of 8:00 AM and break below 2706.25, the low of 8:00 AM
Pre-Open
On Wednesday, at 4:00 PM, S&P future (June contract) closed at 2725.00 and the index closed at 2724.44 – a spread of about -0.50 points; futures closed at 2726.00 for the day; the fair value is +1.00
Pre-NYSE session open, futures price action is to the downside – at 9:00 AM, S&P 500 futures were down by -18.50; Dow by -187.00; and NASDAQ by -69.00
Directional Bias Before Open
Weekly: Uptrend Under Pressure
Daily: Uptrend resumed
120-Min: Up-Side
30-Min: Side-Down
15-Min: Down
6-Min: Down
The trend and patterns on various time frames for S&P 500 are:
The week ending on May 18 was a small red candlestick line with small lower shadow and smaller upper shadow just above the real body of previous week; breaking above a symmetrical triangle
Last week’s pivot point=2718.99, R1=2736.08, R2=2759.18; S1=2695.89, S2=2678.80; No pivot levels were breached;
A down week; third in last five weeks and sixth in last ten weeks
A symmetrical triangle pattern is in the process of completion; price in breaking above it
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
Below 10-week EMA; at 39-week SMA and above 89-week SMA
Uptrend under pressure
Daily
A bearish engulfing candle that engulfed the upper and lower shadows of Monday too
Above 20-day EMA; at 50-day EMA and 100-day SMA; above 200-day SMA
Uptrend resumes
2-Hour (e-mini future)
Retreated from the upper limit of a horizontal channel at 9:30 AM on May 22 near 2742.00; near the lower limit of the channel
Uptrend since 10:00 AM on May 3 in steps; higher highs and higher lows;
RSI-9 moved below 20 from above 70 at 9:30 AM on May 22
Below 20-bar EMA, which is crossing below EMA10 of EMA50
Bias: Up-Side
30-Minute (e-mini future)
Moving down since 9:30 AM on May 22; filled the up gap created on Sunday; At a support level – the low near 2708.75 made at 10:30 AM on Friday May 18
RSI moved below 20 from above 70 at 6:30 AM on May 22
Below 20-bar EMA, which is below 50-bar EMA
Bias: Side-Down
15-Minute (e-mini future)
Bollinger Band (20, 2.0) is moving down since 2:30 PM on May 22
The band narrowed from 2:00 AM to 3:00 AM; expanding since 3:00 AM
RSI mostly moved below 50 since 9:45 AM on May 22 and mostly below 40 since 2:30 PM
The Stochastic (9, 1, 3): %K crisscrossed %D around 20 from 3:00 AM to 6:00 AM; reached above 70 and is falling below it;
Bias: Down
Previous Session
Major U.S. indices closed down on Tuesday May 22. The volume was lower than on Monday. The indices made bearish engulfing candlestick line but in most cases the up gap created on Monday is not filled yet.
