Morning Notes – Monday September 26, 2016

Directional Bias For The Day:

S&P 500 eMini Future - 26-Sep-16 9:00 AM

  • The futures are sharply down
  • Odds are high for a down day
  • S&P 500 has been down 7 out of last 8 years during the final five days of Q3
  • Key levels for eMini futures: break above 2155 for bulls and break below 2131 for bears
  • Markets in the East were mostly down – Australia was unchanged
  • European markets are sharply down
  • On Friday, at 4:00 PM, S&P future (Dec contract) closed at 2157.25 and the index closed at 2164.69 – a spread of about 7.50 points

Key Levels:

  • Critical support levels for S&P 500 are 2154.61, 2151.41 and 2139.57
  • Critical resistance levels for S&P 500 are 2166.07, 2170.97 and 2177.25
  • Pre-NYSE session open, futures price action is to the down side; at 9:15 AM, S&P 500 futures were down by -9.50, Dow by -94.00 and NASDAQ by -27.25

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

  • Up trend since Feb 08, 2016
  • Current uptrend under pressure
  • Fallen below an up-trending 10-week SMA
  • 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
  • Uptrend remains under pressure
  • Friday started the Thursday gap fill
  • Price back to the lower bound of the rectangle trading range that was once broken on September 9
2-Hour (e-mini future)
  • Finding resistance at the upper limit of the gap-down following September 8 close at 6:00 PM
  • Sequence of Higher high and higher lows since 10:00 PM on September 22 is in danger of breaking; critical level 2131.50
30-Minute (e-mini future)
  • Continuous decline since the high made at 10:30 AM on September 22
  • At 76.8% retracement of the rally from September 21 low of 2126.25 to September 22 high of 2172.75

Before NYSE Session Open

S&P 500 Daily - 23-Sep-16Friday maintained it extended its streak of down Fridays to six out of last seven Fridays.

All major U.S. indices were down and filling gap created a day earlier.

For the week, all major U.S. indices, Asian bourses and European exchanges were up. But, only U.S. market were up week before the last week.


Print Friendly, PDF & Email