Directional Bias For The Day:

• Futures are almost unchanged
• Drifting sideways since 4:00 PM on July 6
• Finding resistance at 2410.25, the low of 10:00 AM on July 6; also a support at prior high of 2400.00
• Odds are for a down to sideways day; watch for break above 2411.75 for a change of fortunes;
• Key economic data due:
  • Non-Farm Employment Change (175K est.) at 8:30 AM
  • Average Hourly Earnings (est. 0,3%) at 8:30 AM
  • Unemployment Rate (est. 43.%) at 8:30 AM
  • Fed Monetary Policy Report at 11:00 AM

Markets Around The World

• Markets in the East closed mostly lower – Shanghai was up
• European markets are lower
• Dollar index and USD/JPY are up; GBP/USD and EUR/USD are down
• Commodities are mostly lower – NatGas is up
• 10-yrs yield closed at 2.370% on July 6, up from July 5 close of 2.334%; 30-years closed at 2.903% up from 2.855%

Key Levels:

• Critical support levels for S&P 500 are 2405.70, 2385.68 and 2379.56
• Critical resistance levels for S&P 500 are 2423.48, 2432.09 and 2439.17
• Key levels for eMini futures: break above 2411.75, the high of 3:00 AM and break below 2407.50, the low of 3:30 AM

Pre-Open

• On Thursday, at 4:00 PM, S&P future (September contract) closed at 2408.00 and the index closed at 2409.75 – a spread of about 1.75 points; futures closed at 2428.50 for the day; the fair value is -0.50
• Pre-NYSE session open, futures price action is mixed – at 7:45 AM, S&P 500 futures were up by +0.25; Dow down by -10.00; and NASDAQ up by +4.50

Directional Bias Before Open

• Weekly: Up
• Daily: Side
• 120-Min: Side-to-Down
• 30-Min: Side-to-Down

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, Friday June 30 was a bearish engulfing candle with small upper shadow and a large lower Last week’s pivot point 2426.51; R1=2447.32, R2=2471.23; S1=2402.60, S2=2381.79 A down week – second in last five weeks; fourth in last ten weeks Broke above a down sloping flag (2378.36) on April 24, which has bullish implications; first target is near 2520.00 and the second target is near 2640.00 Broke above a down-sloping flag on November 14, 2016; first target of 2285.92 is achieved; second target is near 2467.50 Last swing low, 2322.25, was the low on March 27, 2017 Above 39-week SMA, 89-week SMA and 10-week SMA Confirmed uptrend, though pulling back
Daily	A large red candle with a gap down, and almost no upper and lower shadows At the upper limit of a horizontal channel that it broke above in May – high 2400.58 and low 2322.25 – 100% extension target near 2480.00 Below 20-day; at 50-day EMA; above 100-day and 200-day Uptrend under pressure
2-Hour (e-mini future)	Broken below the support level near 2429.00; at another support level – 2402.25; drifting sideways since 4:00 PM on July 6 Sequence of lower highs and lower lows since 2:00 PM on June 19 Below falling 20-bar EMA, which is below falling 50-bar EMA
30-Minute (e-mini future)	Broke below a descending triangle; first target near 2400.00 Drifting sideways with down bias since 4:00 PM on July 6 Just below falling 20-bar EMA, which is below falling 50-bar EMA

Previous Session

Major U.S. indices declined sharply on July 6. S&P 500 lost -0.9%, NASDAQ Composite -1.0%, Dow Jones Industrial Average -0.7% and Russell 2000 -1.4%. Market opened with a gap down and never recovered.

All S&P 500 sectors were down. The worst performers were  – Real Estate (-1.8%), Healthcare (-1.3%), Energy (-1.1%) and Consumer Discretionary (-1.0%).