Directional Bias For The Day:
- The futures are lower
- In a horizontal channel since 9:30 AM on February 3
- Knocking on the lower limit of the channel
- Odds are for a down to sideways day; watch for break above 2294.25 for change of fortunes
Markets Around The World
- Markets in the East were mostly higher; Sydney was the lone exception
- European markets are lower
- Dollar index and EUR/USD are up; GBP/USD and USD/JPY are down
- Commodities are mixed – crude oil, NatGas are down; gold, silver and copper are up
- 10-yrs yield is at 2.424%, down from February 3 close of of 2.491%; 30-years is at 3.060%, down from February 3 close of 3.114%
- Critical support levels for S&P 500 are 2287.88, 2275.14 and 2271.65
- Critical resistance levels for S&P 500 are 2300.99, 2304.97 and 2311.62
- Key levels for eMini futures: break above 2294.25, high of 5:30 AM and break below 2284.00, the low of 8:30 AM
- Pre-NYSE session open, futures price action is to the downside – at 9:00 AM, S&P 500 futures were down by -3.75, Dow is down by -36.00 and NASDAQ by -9.75
- On Friday, at 4:00 PM, S&P future (March contract) closed at 2292.00 and the index closed at 2297.42 – a spread of about 5.50 points; futures closed at 2291.00 for the day; the fair value is +1.00
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. indices were higher on Friday February 3 after a gap-up open. I the price continues moving up then it will form an island, which would be positive for the market. NYSE Composite and Wilshire 5000 Total Market Index are forming patterns similar to that of S&P 500.
Dow Jones Industrial average is knocking on the upper limit of a horizontal channel. A break above it will open the path towards 20250-20300 level. Dow Jones Transportation Average is trying to bounce from the near the 2017 lows.
Russell 2000 has moved to the middle of its horizontal channel and NASDAQ Composite is trying to break above its highs.