Market Diary – Wednesday September 07, 2016

Directional Bias For The Day:

eMini 2Hour - 160907 6:00 AM

  • The futures were little changed at 8:30 AM
  • Intraday charts are showing mixed trend
  • On Friday at 4:00 PM, S&P future (Sept contract) closed at 2185.50 and the index closed at 2186.48 – a spread of about 1.00 points

Key Levels:

  • Critical support levels for S&P 500 are 218.02, 2175.10, and 2170.67
  • Critical resistance levels for S&P 500 are 2186.23, 2187.94 and 2193.30
  • Pre-NYSE session open, futures price action is indecisive. At 8:45 AM, S&P 500 futures was down by -1.25, Dow was unchanged and NASDAQ was up by +5.25

Economic Data:

Report Current Est. Prev.
U.S. JOLTS Jobs Openings (10 AM)   5.38M 5.62M

The trend and patterns on various time frames for S&P 500 are:

Monthly
  • Up trend since Feb 08, 2016
Weekly
  • Up trend since Feb 08, 2016 with one pullback; broke out of a 2-year trading range in July, 2016
  • Last swing low, 1991.68, was reached on June 27, 2016
Daily
  • First back-to-back up day since August 18
  • Price continue the bounce off 20-day and 10-day EMAs following few days of indecisive action
  • A rally and close above 2193.42 will nullify the abandoned baby top reversal formed on Aug 24
  • 9-period RSI is showing a downtrend line; for rally to continue the down trend line needs to be broken
  • Uptrend since June 28th with one pullback; last swing low 2147.58 on Aug 2
  • Mostly sideways move since August 5
  • 61.8% retracement from last low is 2116.59
2-Hour (e-mini future)
  • Made a higher high at 2:00 PM on September 6 confirming the uptrend since 10: AM low on September 1
  • The pennant, which was forming on September 6, was whiplashed and then broken to the upside ;
  • Previous pattern – a rectangle trading range – is morphing into a broadening pattern with horizontal upper limit
  • Facing resistance at the spike of 10:00 AM bar on August 26 following Chair Yellen’s Jackson Hole speech and Vive-Chair Fischer’s comments
30-Minute (e-mini future)
  • Sequence of higher highs and higher lows since 11:00 AM on September 1
  • Above a uptrend line from 11:00 AM September low

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