Morning Notes – Friday November 11, 2016

Directional Bias For The Day:

S&P 500 eMini Futures 11-Nov-16 (2-Hourly) 8:00 AM

  • The futures are down
  • Trending down since 3:00 AM high of 2180.50
  • Emerging symmetrical triangle on 30-minute chart
  • Odds are for a down day

Markets Around The World

  • Markets in the East were mixed – Shanghai, Tokyo and Sydney were up; Hong Kong, Mumbai and Seoul were down
  • European markets are mixed – Germany and Italy are up; France, Spain, Switzerland; UK are down
  • Dollar index is down; EUR/USD, USD/JPY and GBP/USD are down
  • Commodities are mostly down – only copper is up

Key Levels:

  • Critical support levels for S&P 500 are 2161.09, 2151.17, and 2144.66
  • Critical resistance levels for S&P 500 are 2178.26, 2181.30, and 2193.42
  • Key levels for eMini futures: break above 2170.00, the 3:00 AM high, and break below 2151.25, the low of 5:30 AM


  • Pre-NYSE session open, futures price action is to the down side; at 8:30 AM, S&P 500 futures were down by -9.00, Dow by -42.00 and NASDAQ by -37.00
  • On Thursday, at 4:00 PM, S&P future (Dec contract) closed at 2164.25 and the index closed at 2167.48 – a spread of about 3.25 points; futures closed at 2167.25 for the day

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

  • Up trend since Feb 08, 2016
  • Current uptrend under pressure; recent price action may relieve the pressure for uptrend to resume
  • Above an 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
  • Broke below a small bearish ABCD pattern with a downside target near 2105.30 (100% – met), 2076.77 (138.2%), 2067.96 (150%), 2059.14 (161.8%)
  • Broken below 2015 high, which was acting as a resistance
  • Crossed above 39-week SMA after falling below it; above 89-week SMA
  • At the 100-day SMA from below
  • Down trend line broken to the upside; sequence of lower highs and lower lows broken
  • Price above EMA-10 since November 7; EMA-10 crossed above EMA-20
2-Hour (e-mini future)
  • Trending down since 3:00 AM, November 11 high
  • At 20-bar EMA
  • V-shaped reversal
30-Minute (e-mini future)
  • A symmetrical triangle near the high of 2180.50, highest since September 9
  • Relevant levels: for upside break above 2170 and for downside break below 2151.25

Previous Session

S&P 500 10-Nov-16U.S. markets were mostly up on Thursday. NASDAQ Composite was the only one to decline.

S&P 500 made a doji. Dow Jones Industrial Average had another 1+ percent up day. On November 8, it had broken to the upside of a descending triangle, the first target is near 18950. Critical level for NASDAQ are 5302 and 5145.

Print Friendly, PDF & Email