Directional Bias For The Day:
- The futures are up since midnight after BoJ meeting
- Wednesday after September expiry Friday is bearish for S&P 500 – 73% odds for a down day
- The day of FOMC meeting has been bullish for the market
- Key levels for eMini futures: break above 2146.75 for bulls and break below 2126.50 for bears
- Markets in the East were mostly up with only India being down;
- European markets are up after again a gap-up open
- Odds are good or an up day.
- On Tuesday, at 4:00 PM, S&P future (Dec contract) closed at 2131.75 and the index closed at 2139.76 – a spread of about 8.00 points
- Critical support levels for S&P 500 are 2135.91, 2131.20 and 2124.06
- Critical resistance levels for S&P 500 are 2146.16, 2153.61 and 2157.57
- Pre-NYSE session open, futures price action is to the up side; at 8:30 AM, S&P 500 futures were up by +6.50, Dow were up by +56.00 and NASDAQ by +19.50
The trend and patterns on various time frames for S&P 500 are:
|2-Hour (e-mini future)||
|30-Minute (e-mini future)||
Before NYSE Session Open
Tuesday was, like Monday, an up and down day. The promising start fizzled in the afternoon. The mid-afternoon rally also turned down during the last hour. The S&P 500, however, managed to close even for the day.
NASDAQ Composite still remains the best looking chart. It made a red-harami doji within another red candlestick near the upper limit of a rectangle trading range. Small-cap, Russell 2000, declined on Tuesday. Other major U.S indices were either up or even for the day.
They all were waiting for the FOMC meeting and Bank of Japan meeting on Wednesday.