S&P Futures are lower; forming a double bottom on 30-minute chart
Odds are for a sideways to down day with low volume, hence unpredictability; watch for break above 2898.25 and below 2895.00 for clarity
Key economic data due:
Chicago PMI (est. 63.0) at 9:45 AM
Markets Around The World
Markets in the East closed mostly down – Seoul was up
European markets are down
Currencies:
Up
Down
Dollar index
USD/CHF
USD/CAD
EUR/USD
GBP/USD
USD/JPY
AUD/USD
NZD/USD
USD/INR
Commodities:
Up
Down
NatGas
Gold
Silver
Platinum
Palladium
Sugar
Cotton
Crude Oil
Copper
Coffee
Cocoa
Bonds
10-yrs yield is at 2.833%, down from August 30 close of 2.860%;
30-years is at 2.979%, down from 3.006%
2-years yield is at 2.633%, down from 2.645%
The 10-Year-&-2-Year spread is at 0.200, down from 0.215
Key Levels:
Critical support levels for S&P 500 are 2895.25, 2884.69 and 2875.72
Critical resistance levels for S&P 500 are 2905.23, 2912.26 and 2916.50
Key levels for eMini futures: break above 2898.25, the high of 8:15 AM and break below 2895.00, the low of 8:30 AM
Pre-Open
On Thursday, at 4:00 PM, S&P future (September contract) closed at 2901.50 and the index closed at 2901.13 – a spread of about -0.25 points; futures closed at 2902.00 for the day; the fair value is -0.50
Pre-NYSE session open, futures price action is to the down side – at 9:00 AM, S&P 500 futures were down by -6.25; Dow by -63.00; and NASDAQ by -10.00
Directional Bias Before Open
Weekly: Uptrend
Daily: Uptrend
120-Min: Up-Side
30-Min: Side
15-Min: Down-Side
6-Min: Down
The trend and patterns on various time frames for S&P 500 are:
The week ending on August 24 was a green candle with almost no upper and lower shadow; made all time highs on intra-day and closing basis
Last week’s pivot point=2867.16, R1=2883.69, R2=2892.70; S1=2858.15, S2=2841.62; R1 pivot level was breached;
A second up week in a row; fourth in last five weeks and seventh in last ten weeks
Broke above an ascending triangle but retraced back to its upper limit; 100% extension target is near 3070.00 level
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 2639.44 and the 161.8% extension target near 2835.46 are achieved; the 261.8% extension target is near 3013.72
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
Above 10-week EMA; above 39-week SMA and above 89-week SMA
Uptrend
Daily
A red spinning top harami candle following a large green candle than made all time highs
%K is crossed below %D; potential bearish divergence
Above 20-day EMA, 50-day EMA, 100-day SMA and 200-day SMA
Uptrend
2-Hour (e-mini future)
Declining from a high of 2917.50 at 2:00 PM on August 29; near a support/congestion level at 2894.00
RSI-9 made a bearish divergence eat 10:00 AM on August 29; in a downtrend since 8:00 PM on August 27; mostly below 40 since 2:00 PM on August 30
Below EMA10 of EMA50, which is below 20-bar EMA
Bias: Up-Side
30-Minute (e-mini future)
Forming a descending triangle
RSI-9 moving mostly below 50 since 9:30 PM on August 29; mostly moving along 40 since 3:00 AM
Below 20-bar EMA, which is below 50-bar EMA
Bias: Side
15-Minute (e-mini future)
Bollinger Band (20, 2.0) is sloping down since 3:45 PM on August 29; new leg down since 5:30 AM
The band is relatively large for pre-open session
RSI below 65 since 3:30 PM on August 29; majority of time below 50 and occasionally dipping below 40
The Stochastic (9, 1, 3): %K is crisscrossing %D near 30; made a bullish divergence at 7:45 AM
Bias: Down-Side
Previous Session
Major U.S. indices closed lower on Thursday August 30. Dow Jones Industrial Average, S&P 500, NYSE Composite, Wilshire 5000 Total Market Index are in danger of making three day evening star pattern. A close below Thursday’s close will complete the pattern. NASDAQ Composite and Russell 2000 made intra-day all time highs but closed down. The volume was mixed. S&P 500 and Dow Transports traded in lower volume and others in higher volume.
