Directional Bias For The Day:

• The futures are moving sideways
• Trending down after the high of 2299.50 at 1:00 AM on January 26
• Odds are for a sideways to down day; watch for break above 2299.50 for change of fortunes

Markets Around The World

• Markets in the East were mixed; Hong Kong was down; Tokyo, Sydney and Mumbai were higher; Shanghai and Seoul were closed
• European markets are lower
• Dollar index EUR/USD and USD/JPY are up; GBP/USD is down
• Commodities are mostly down: Copper is the only exception
• 10-yrs yield is at 2.497%, down from Jan 26 close of 2.508%; 30-years is at 3.086%, down from 3.091% on Jan 26

Key Levels:

• Critical support levels for S&P 500 are 2294.08, 2288.88 and 2284.63
• Critical resistance levels for S&P 500 are 2300.99, 2304.16 and 2307.33
• Key levels for eMini futures: break above 2296.75, high of 2:30 AM and break below 2291.25, the low of 5:00 AM

Pre-Open

• Pre-NYSE session open, futures price action is mixed – at 9:00 AM, S&P 500 futures were down by -0.25, Dow is down by -24.00 and NASDAQ is up by +11.25
• On Thursday, at 4:00 PM, S&P future (March contract) closed at 2292.50 and the index closed at 2296.68 – a spread of about 4.00 points; futures closed at 2294.00 for the day; the fair value is +1.50

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

Monthly	Confirmed Uptrend Uptrend resumption since Feb 08, 2016 after a pull back of -15.2%
Weekly:	Candlestick for the last week was a narrow body with longer lower shadow than upper shadow; week before it was large green candle than open in the middle of previous large bearish engulfing and closed above the highs Break of the high of week 2-Jan, 2282.10, is critical for the continuation of the uptrend Broke above a down-sloping flag on November 14, 2016; first target is 2285.92; next 2363.14 Last swing low, 2083.79, was the low on November 4, 2016 Above 39-week SMA and 89-week SMA
Daily	Small harmi red candle; made another intraday high At the upper limit of an emerging broadening pattern since December 12, which is in danger of being nullified Above 100-day, 200-day, 50-day, and 20-day SMA/EMA Sequence of higher highs and higher lows Last swing low 2263.62
2-Hour (e-mini future)	Trending down after making a high of 2299.50 at midnight January 25-26 Broken above the downtrend line from January 6 high, that it was hugging for many days Sequence of lower high, lower lows since 12:00 PM on Jan 6, is broken with higher high and higher low Uptrend resumption At the upper limit of an emerging broadening pattern, that is danger of being nullified; it could also turn to be a TCLOS
30-Minute (e-mini future)	Above the horizontal channel, which formed from an emerging symmetrical triangle; Drooping since making a high of 2299.50 at 1:00 AM on January 26 Sharp rise since 10:00 AM on January 23 Above rising 50-bar and 20-day EMAs Uptrend resumed

Previous Session

U.S. indices were mixed and mostly traded sideways on Thursday January 26.

NYSE Composite and Wilshire 5000 Total Market Index made small red-harami candles. So did Russell 2000.

up at the open and were sharply higher on Wednesday January 25 following gains on previous day. S&P 500, Dow Jones Industrial Average, NASDAQ Composite and Dao Jones Transportation Average made new intraday highs. S&P 500 and NASDAQ closed down for the day.