Directional Bias For The Day:

• The bias is to the up side
• On 30-minute chart, S&P 500 futures is within a symmetric triangle near the all time high
• S&P
• Critical support levels for S&P 500 are 2113.00 and 2106.97
• Critical resistance levels for S&P 500 are 2134.72 and 2147.60;
• Early morning futures price action is to the upside – S&P Futures up by +8.50, Dow futures by +79.00 and NASDAQ by +21.50

Before NYSE Session Open

On Friday, S&P 500 jumped up after June’s Non-Farm Payroll gains came at a higher level than expected.

The S&P 500 reached a high 2131.71 before closing at 2129.90 for a gain of +32.00 or +1.52%. This is slightly below all time high of 2134.72 reached in May 2015.

The Dow Jones Industrial Averages gained +250.86 or +1.4% to 18146.74. NASDAQ Composite was up by +1.54% and Russell 200 was up by +2.40%.

Asian Session

The Asian bourses were mostly up on Monday after a big rally in USA following good Non-Farm Payroll report on Friday.

• Shanghai Composite was up by +6.82 or +0.23% but it closed near the open and below the high by 26 points
• Hang Seng was up +316.33 or+1.54% but still within a symmetric triangle
• Nikkei 225 jumped +601.84 or +3.98% after decisive election victory of Prime MInister Shinzo Abe, rasing the chances of a fiscal stimulus; it is still near the lows and has not made a turn to upside yet
• Sydney’s S&P/ASX 200 gains +2.04% and broke above the support-turned-resistance to enter the previous rectangle trading range
• Sensex gapped up and broke above a down-sloping flag, reversing four-days of decline. It gained +1.84%
• South Korea’s Kospi gapped up and closed up by 1.30%

European Session

In pre-US session, European stock markets are mostly up.

• DAX is up by +162.81 or +1.69%; it is again filling June 24th gap down, in the process it in the CD leg of a bullish ABCD pattern
• FTSE-100 is up +59.09 or +0.90% to 6649.73 after unexpected withdrawal of Andrea Leadsom from U.K. Prime Minister race, effectively cutting short the election by nine-weeks; FTSE is also breaking above an elevated handle of a Cup-With-Handle patter
• CAC-40 is up by +1.48%, Italian FTSE MIB by +0.69%, Spanish IBEX-35 by +1.20, STOXX-600 by +1.18% and Swiss SMI-SWX by +0.61%; all are making chart pattern similar to that of DAX, Swiss SMI-SWX being most bullish

Currencies

• U.S. Dollar index is up by +0..153 and is breaking above the handle of an uneven cup-with-handle pattern
• EUR/USD is up by +16.6 pips to 1.10656; it is still facing a down-ward pressure
• GBP/USD is up by +21 pips to 1.2973 in a downtrend
• USD/JPY is up by +192.30 pips (Yen is weaker) to 102.406; making a large candle that has engulfed previous 4-days range but still in a downtrend

Commodities

• WTI Crude is up by +0.03 to 45.44 after breaking below the lower limit of a descending triangle; Natural Gas is down by -0.020% to 2.781
• Gold is unchanged at 1358.30; Silver is up by +0.291 to 20.390
• Copper is up by +1.89% to 2.159

Yields

• U.S. 30-years yield is marginally up to 2.112% and 10-years yield is up to 1.393% from 1.366%

Pivot Levels:

S&P 500 is above its 10-D EMA, 10-D EMA crossed above 20-D EMA and its 20-D EMA is trending above 50-D EMA since March 9, 2016.

	S&P 500 Cash		eMini Futures
Daily	Level	Break Chance	Level	Break Chance
Pivot	2122.86		2111.17
R1	2138.75	62%	2134.83	57%
R2	2147.60	42%	2149.17	31%
R1	2163.49	45%	2172.83	26%
S1	2114.01	35%	2096.83	35%
S2	2098.12	34%	2073.17	26%
S3	2089.27	23%	2058.83	23%

Note: The probability of a level breaking is shown above is for the current condition when the price is above 20-D EMA, 10-D EMA is above 20-D EMA and 20-D EMA is above 50-D EMA. R2 break probability comes in picture only when R1 is broken. So are the probabilities calculated for R3, S2 and S3