Directional Bias For The Day:
S&P Futures are lower; dipped 30 points from Friday’s close; moving higher from a low of 2690.25 at 4:30 AM; up 15 points from the lows- Odds are for a down day with increased volatility – watch for break above 2706.00 for change of fortune
- Key economic data due:
- CB Consumer Confidence (est. 128.2) at 10:00 AM
Markets Around The World
- Markets in the East were mostly down – Sydney was up
- European markets are down
- Currencies:
| Up |
Down |
- Dollar index
- USD/CHF
- USD/CAD
- USD/INR
|
- EUR/USD
- GBP/USD
- USD/JPY
- AUD/USD
- NZD/USD
|
- Commodities:
| Up |
Down |
- Copper
- Platinum
- Cotton
- Cocoa
|
- Crude Oil
- NatGas
- Gold
- Silver
- Palladium
- Sugar
- Coffee
|
- Bonds
- 10-yrs yield is at 2.886%, down from May 25 close of 2.931%;
- 30-years is at 3.061%, down from 3.090%
- 2-years yield is at 2.452%, down from 2.516%
- The 10-Year-&-2-Year spread is at 0.434, up from 0.415
Key Levels:
- Critical support levels for S&P 500 are 2707.38, 2701.91 and 2693.1
- Critical resistance levels for S&P 500 are 2717.59, 2722.68 and 2727.36
- Key levels for eMini futures: break above 2706.00, the high of 4:00 AM and break below 2699.25, the low of 8:00 AM
Pre-Open
- On Friday, at 4:00 PM, S&P future (June contract) closed at 2720.00 and the index closed at 2721.33 – a spread of about -1.25 points; futures closed at 2718.25 for the day; the fair value is +1.75
- Pre-NYSE session open, futures price action is to the downside – at 8:15 AM, S&P 500 futures were down by -15.50; Dow by -156.00; and NASDAQ by -31.25
Directional Bias Before Open
- Weekly: Uptrend Under Pressure
- Daily: Uptrend resumed
- 120-Min: Side-Down
- 30-Min: Down
- 15-Min: Down
- 6-Min: Down-Side
The trend and patterns on various time frames for S&P 500 are:
| Monthly |
- Confirmed Uptrend
- December 2017 closed higher; index has been higher for the nine straight months; it has only one down month, March 2017, since October 2016
- Uptrend resumption since Feb 08, 2016 after a pull back of -15.2%
|
| Weekly: |
- The week ending on May 18 was a small red spinning top candlestick, which was also a harami candle just above the upper limit of a symmetrical triangle
- Last week’s pivot point=2723.65, R1=2739.92, R2=2758.51; S1=2705.06, S2=2688.79; R1 pivot level was breached;
- An up week; second in last five weeks and fifth 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; 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 small doji candle that was complete with the lower shadow of previous day; sideways move since May 10
- Above 20-day EMA; above 50-day EMA and 100-day SMA; above 200-day SMA
- Uptrend resumes
|
| 2-Hour (e-mini future) |
- Breaking below a horizontal channel is emerging since May 10; a convincing break below 2701.00 will open the targets between 2675.00 and 2560.00 levels
- Uptrend since 10:00 AM on May 3 with sequence of higher highs and higher lows has broken
- RSI-9 found resistance at 65 many times since May 23; fallen below 20
- Below 20-bar EMA, which is below EMA10 of EMA50
- Bias: Side-Down
|
| 30-Minute (e-mini future) |
- Moving mostly lower since 9:30 PM after making a triple top around 2733.00-23737.00 level
- RSI mostly finding resistance near 65 since May 23; declining since 8:00 PM on May 27; touched 17.36 at 4:30 AM; bouncing but still below 40
- Below 20-bar EMA, which is below 50-bar EMA
- Bias: Down
|
| 15-Minute (e-mini future) |
- Bollinger Band (20, 2.0) is sloping down
- The band was narrow during Monday, which was Memorial Day holiday; expanding since 1:45 AM with price hugging the lower limit
- RSI mostly staying below 50 since 4:430 AM on May 28; rising from below 20 and near 40
- The Stochastic (9, 1, 3): %K crossed above %D at 7:15 AM near 40; rising above 70
- Bias: Down
|
Previous Session
Major U.S. indices closed mostly lower on Friday May 25. The volume was mostly lower too. NASDAQ Composite and Dow Jones Transportation Average closed higher and the volume on DJT was higher too.
For the week, most major indies closed higher. NYSE Composite was down. The volume was lower except for Dow Jones Industrial Average. The declining S&P 500 sectors for the week were Energy, Materials, Finance and Health Care.
| Up |
Down |
- Consumer Discretionary
- Consumer Staples
- Utility
- Real Estate
- Telecom
|
- Energy
- Materials
- Industrials
- Finance
- Technology
- Heath Care
|
Major U.S. indices closed mostly lower on Friday May 25. The volume was mostly lower too. NASDAQ Composite and Dow Jones Transportation Average closed higher and the volume on DJT was higher too.
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