Directional Bias For The Day:
- Futures are flat
- Moving up since 12:00 AM
- Trading within a narrow horizontal channel for the past few days
- Odds are for a range bound day; watch for break below above 2390.75 and below 2379.00 for change of fortunes
- Dependent upon Non-Farm Payroll data – a good report may be bullish and bad one bearish
- Key economic data:
- Non-Farm Payroll – (est. 194K)
- Avg. Hourly Earnings
- Unemployment Rate
Markets Around The World
- Markets in the East were down – Tokyo and Seoul were closed
- European markets are mixed – Germany, U.K. Spain, Switzerland and STOXX 600 are down; France and Italy are up
- Dollar index and GBP/USD are up; USD/JPY and EUR/USD are down
- Commodities are mostly higher – crude oil is lower
- 10-yrs yield closed at 2.356% on May 4 up from May 3 close of 2.309%; 30-years closed at 2.999% down from 2.955%
Key Levels:
- Critical support levels for S&P 500 are 2379.75, 2376.17 and 2369.19
- Critical resistance levels for S&P 500 are 2394.49, 2398.16 and 2400.98
- Key levels for eMini futures: break above 2390.75, the high of 7:00 AM on May 4, and break below 2379.00, the low of 12:00 AM
Pre-Open
- Pre-NYSE session open, futures price action is flat – at 7:00 AM, S&P 500 futures were up by +1.25; Dow down by -9.00; and NASDAQ up by +2.75
- On Thursday, at 4:00 PM, S&P future (June contract) closed at 2386.00 and the index closed at 2389.52 – a spread of about 3.50 points; futures closed at 2385.50 for the day; the fair value is +0.50
The trend and patterns on various time frames for S&P 500 are:
Monthly |
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Weekly: |
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Daily |
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2-Hour (e-mini future) |
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30-Minute (e-mini future) |
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Previous Session
Major U.S. indices were mixed on Thursday May 4. S&P 500, NASDAQ Composite, Dow Transportation Average and NYSE Composite closed up. Dow Jones Industrial Average , Russell 2000 and Wilshire 5000 Total Market Index closed down.
Day’s price action was within a narrow range. Like on Wednesday, S&P 500 made a doji candle with a longer lower shadow. NASDAQ, NYSE and Wilshire made similar pattern. DJIA made a hammer pattern.
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