Directional Bias For The Day:
- Greater likelihood of a range bound day with high pressure for market to decline
- The 4-Hour chart of S&P 500 future is showing a narrow rectangle trading range since July 13th, bounded between 2173 and 2153
- Critical support levels for S&P 500 are 2159.75, 2155.79 and 2146.21
- Critical resistance levels for S&P 500 are 2173.71, 2179.81 and 2185.90
- Early morning futures price action is indecisive; at 8:30 AM, S&P 500 future was down by -0.50, Dow is down by -12.00 and NASDAQ is up by +5.50.
Before NYSE Session Open
Major US indices declined slightly on Monday, July 25th. S&P 500 is range bound for the past few trading sessions and Monday was no different. Since July 14th, it has stayed between 2155.79 and 2175.57. On Monday, S&P 500 lost -6.55, Dow lost -77.79, NASDAQ -2.53 and Russell 2000 -3.07.
The Asian bourses were mixed on Tuesday.
- Shanghai Composite was up by +34.34 or +1.14%
- Hang Seng was up +136.29 or +0.62%
- Nikkei 225 lost -237.25 or -1.43%
- Sydney’s S&P/ASX 200 gained +3.9 or +0.07%
- Sensex lost -118.82 or -0.42%
- South Korea’s KOSPI was up by +15.02 or +0.75%
In pre-US session, the European stock markets are mostly mixed.
- DAX is up by +36.80 or +0.36%
- FTSE-100 is up by +20.11 +0.30%
- CAC-40 is up by +0.03%, Swiss SMI-SWX by +0.38%, and STOXX-600 by +0.11%
- Spanish IBEX is down by -0.49% and Italian FTSE MIB by -0.33%;
- U.S. Dollar index is down by -0.191 to 97.135
- EUR/USD is up by +1.8 pips to 1.09949
- GBP/USD is down by -4.00 pips to 1.3134
- USD/JPY is down by -154.1 pips (Yen is stronger) to 104.286
- WTI Crude is down by -0.51 or -1.18% to 42.62; Natural Gas is down by -0.057 or -2.07% to 2.69
- Gold is up by +2.40 or +0.18% to 1321.90; Silver is up by +0.028 or +0.14% to 19.675
- Copper is down by -0.015 or -0.07% to 2.2155
- U.S. Treasury yields are down for the day so far
- 30-year yield is down 2.4 basis points to 2.263% and 10-year is down by -1.7 basis points to 1.554%
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|
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