Directional Bias For The Day:

• The futures facing downward pressure – odds are high for a down trend day
• ECB Policy inaction has perhaps changed the tone of the market
• Markets in Asia were mostly down overnight and European stocks are down too
• Futures contract changed to Dec’ 16
• On Thursday, at 4:00 PM, S&P future (Dec contract) closed at 2173.00 and the index closed at 2181.30 – a spread of about 8.25 points

Key Levels:

• Critical support levels for S&P 500 are 2177.49, 2173.59, and 2170.86
• Critical resistance levels for S&P 500 are 2184.94, 2187.87 and 2193.17
• Pre-NYSE session open, futures price action is to the downside; at 7:15 AM, S&P 500 futures was down by -6.75, Dow was down by -57 and NASDAQ was down by -12.25

Significant Event:

Report	Current	Est.	Prev.
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The trend and patterns on various time frames for S&P 500 are:

Monthly	Up trend since Feb 08, 2016
Weekly:	Hugging an up-trending 10-week SMA since the week of August 22 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	Price at 20-day and 10-day EMAs 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)	Sequence of higher highs and higher lows broken Uptrend line broken and acted as a resistance on bounce Next support at 2154.75 low on September 1
30-Minute (e-mini future)	Uptrend line broken and acted as a resistance on bounce Down pressure

Before NYSE Session Open

Thursday started on a down note following ECB President Draghi’s press conference, which dampened the mood of investors. The major U.S. indices did not recover later in the day unlike last few days. Dow Jones Transportation Average, however, gained. VIX, the S&P volatility index gained +4.*, the most since August 24.

On Thursday:

	Up	Down	Last	Notes
S&P 500		-4.86 or -0.2%	2181.30	Critical resistance of 2187.94, the Aug 26 high Critical support of 2157.09, the September 1 low
Dow Jones Industrial Average		-46.23 or -0.2%	18479.91	In the middle of a rectangle trading box (High=18668 – Low=18247) At 10-day and 20-day EMAs
NASDAQ Composite		-24.45 or -0.5%	5259.48	Fallen back into rectangle trading box (High=5275 – Low=5197); target near 5353
Russell 2000		-2.65 or -0.2%	1258.36	A red-harami within a large green candle Trending up within a narrow up-sloping channel
Dow Jones Transportation Average	+19.00 or +0.2%		8076.60	Breaking above one resistance high into another
VIX	+0.57 or +4.8%		12.51