Directional Bias For The Day:
- The futures are unchanged but finding resistance at a down trend line on 30-minute timeframe
- S&P 500 has been down for eight consecutive day; last time it did that was on August 12 1982
- Odds are for a bounce on law of averages
- The markets are driven more by U.S. presidential election than anything else
Markets Around The World
- Markets in the East were down
- European markets are down after a gap down open; losses are extending
- Dollar index, USD/JPY and EUR/USD are up; GBP/USD is down
- Commodities are mixed – copper is up and all others are down
- Critical support levels for S&P 500 are 2081.74, 2074.82, and 2068.91
- Critical resistance levels for S&P 500 are 2094.00, 2102.56, and 2111.76
- Key levels for eMini futures: break above 2090.00, the 2:00 PM high on November 3, for bulls and break below 2080.50, the low of 5:00 AM, for bears
- Pre-NYSE session open, futures price action is slightly to the up side; at 8:45 AM, S&P 500 futures were up by +0.50, Dow by -10.00 and NASDAQ by -0.75
- On Thursday, at 4:00 PM, S&P future (Dec contract) closed at 2083.50 and the index closed at 2088.66 – a spread of about 5.00 points; futures closed at 2083.50 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)||
U.S. markets continued their decline on Thursday. Like on Thursday, the early session up-move in futures and index did not survive the first half hour of trading. Afterwards it was all downhill for most major indices.
S&P 500 extended its down streak to eight days. Since 1950, the index has declined for eight or more days 22 times. Out of these 11 times the streak was extended to nine days and 5 times to ten days. Last time the index was down for eight days was on Thursday August 12 1982. It then begun a bull market. However, in the last three days of the streak it did not breach the lows of August 9. That low has never been breached.
Dow Transportation Average again bucked the trend and closed higher, although, with long upper shadow, like on Wednesday.