Morning Notes – Wednesday October 12, 2016

Directional Bias For The Day:

S&P 500 eMini Futures - 12-Oct-16 8:30 AM

  • The futures are down after making a high of 2140.75 at 9:00 PM on October 11
  • Odds are for a down day
  • Key levels for eMini futures: break below 2127.25, low of 8:30 Am, for bears and break above 2134.25, 7:00 AM high, for bulls
  • Markets in the East were down
  • European markets are mostly down
  • On Tuesday, at 4:00 PM, S&P future (Dec contract) closed at 2130.75 and the index closed at 2136.73 – a spread of about 6.00 points; futures closed at 2134.50 for the day

Key Levels:

  • Critical support levels for S&P 500 are 2127.84, 2119.12 and 2109.66
  • Critical resistance levels for S&P 500 are 2145.75, 2155.91 and 2161.56
  • Pre-NYSE session open, futures price action is to the downside; at 9:00 AM, S&P 500 futures were down by -3.00, Dow by -36.00 and NASDAQ is down by -7.50

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

  • Up trend since Feb 08, 2016
  • Current uptrend under pressure; need to rise above 2187.87 to relieve the pressure
  • 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; need to rise above 2179.99 to relive the pressure
  • Up-sloping flag that morphed into a symmetrical triangle broke to the downside on Tuesday
  • Break below 2119.12 will break the down trend line and form first lower low before making a higher high
2-Hour (e-mini future)
  • An ascending triangle broke to the downside
30-Minute (e-mini future)
  • Down trend since 9:30 Am on October 10
  • Lower high / lower low

Before NYSE Session Open

S&P 500 11-Oct-16On Tuesday, major U.S. indices opened with a gap-down and then accelerated the decline as the day progressed. All has a range expansion day to the downside.

Except Dow Jones Transportation Average, major indices breached Monday’s low.

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