Directional Bias For The Day:
- The futures are down
- Down trend since 5:00 AM on October 25 high of 2149.75
- At the lower limit of an ascending triangle on 2-hour time-frame and a horizontal channel on 30-minute time-frame
- Odds are for a down day
Markets Around The World
- Markets in the East were mostly down – Tokyo was an exception
- European markets are down
- Dollar index, USD/JPY, EUR/USD are down; GBP/USD is up
- Commodities are down
- Critical support levels for S&P 500 are 2135.94, 2130.09 and 2124.57
- Critical resistance levels for S&P 500 are 2146.66, 2152.41 and 2154.79
- Key levels for eMini futures: break above 2135.25, the 2:30 AM high, for bulls and break below 2126.25, the low of 5:00 AM, for bears
- Pre-NYSE session open, futures price action is to the downside; at 6:45 AM, S&P 500 futures were down by -8.00, Dow by -75.00 and NASDAQ by -24.50
- On Tuesday, at 4:00 PM, S&P future (Dec contract) closed at 2137.75 and the index closed at 2143.16 – a spread of about 5.50 points; futures closed at 2138.00 for the day
The trend and patterns on various time frames for S&P 500 are:
|2-Hour (e-mini future)||
|30-Minute (e-mini future)||
Major U.S indices undid their Monday’s positive performance on Tuesday. Most closed the opening gap created on Monday and closed below it. NASDAQ Composite bucked this trend, it did not close the gap but still closed below Monday’s low.
Dow Jones Industrial Average is in the middle of a descending triangle after breaking below the uptrend line from February 11 low on October 11. S&P 500 is hugging its corresponding uptrend line. Presently, it is below the line.
$VIX, S&P 500 Volatility Index, broke its streak of down days and formed a bullish engulfing candlestick pattern on Tuesday.