Market Remarks

Morning Notes – Wednesday October 25, 2017

Directional Bias For The Day:

  • S&P Futures are lower
  • Moving sideways 6:00 PM on October 24 with a slight up bias since 1:00AM
  • Odds are for a sideways day – watch for break above 2570.25 and below 2460.50 for change of fortunes
  • Key economic data due:
    • Durable Goods (2.2% vs. 1.0% est.) and Core Durable Goods (0.7% vs. 0.5% est.) at 8:30 AM
    • New Home Sales (est. 0.4%) at 10:00 AM

Markets Around The World

  • Markets in the East closed mostly higher –  Tokyo was down
  • European markets are mostly higher – U.K. and Switzerland are down
  • Currencies:
    Up Down
    • Dollar index
    • EUR/USD
    • GBP/USD
    • USD/JPY
    • USD/CHF
    • USD/CAD
    • AUD/USD
    • NZD/USD
  • Commodities are mostly down
    Up Down
    • Coffee
    • Cocoa
    • Crude Oil
    • NatGas
    • Gold
    • Silver
    • Copper
    • Platinum
    • Palladium
    • Sugar
    • Cotton (unch.)
  • 10-yrs yield closed at 2.406% on October 24 up from October 23 close of 2.376%; 30-years closed at 2.922% up from 2.890%

Key Levels:

  • Critical support levels for S&P 500 are 2567.37, 2564.33 and 2558.14
  • Critical resistance levels for S&P 500 are 2569.84, 2572.23 and 2574.75
  • Key levels for eMini futures: break above 2566.25, the high of 7:00 AM and break below 2562.25, the low of 5:00 AM

Pre-Open

  • On Tuesday, at 4:00 PM, S&P future (December contract) closed at 2567.50 and the index closed at 2569.13 – a spread of about 2.50 points; futures closed at 2567.25 for the day; the fair value is +0.25
  • Pre-NYSE session open, futures price action is to the downside – at 7:30 AM, S&P 500 futures were down by -4.00; Dow by -19.00; and NASDAQ by -10.00

Directional Bias Before Open

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

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:
  • A large green candle with small lower shadow and no upper shadow; breaking away from previous candle
  • Last week’s pivot point 2566.19; R1=2584.46, R2=2593.71; S1=2556.94, S2=2538.67; R1/R2 were breached
  • An up week – sixth in last five weeks; eight 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 10-week EM; above 39-week SMA and 89-week SMA
  • Confirmed uptrend
Daily
  • A harami doji within Monday’s large red candle engulfing candle
  • Last pattern, a down-sloping flag in June that was broken to the upside on July 13, is re-asserted
  • Above 20-day EMA, which is above 50-day EMA; Above 100-day SMA and 200-day SMA
  • Pivot Point=2568.96; R1=2572.35, R2=2575.56; S1=2565.75, S2=2562.36; No levels were breached
  • Confirmed Uptrend
2-Hour (e-mini future)
  • Mostly sideways move since 4:00 PM on October between 2570.25 and 2560.50
  • Rose above the 50-bar EMA on October 19 after closing below it for the first time since 10:00 PM on September 26; five bars closed below it
  • Sequence of higher high and higher low since 12:00 PM September 5 was broken but again reasserted
  • At/below flattening 20-bar EMA, which is at/above flattening 50-bar EMA
30-Minute (e-mini future)
  • Sideways move since 6:00 PM on October 24 – between 2566.25 and 2560.50
  • Made a double top at 5:30 AM on October 23; broke below the intermediate low and achieved 200% extension target
  • At/below flat 20-bar EMA, which is below flat 50-bar EMA

Previous Session

Major U.S. indices advanced on Tuesday October 24, however, most made red harami candles within a large red candle. Dow Jones Industrial Average gapped up and made a large green candle and also made all time highs.

  • S&P 500 Sectors
Up Down
  1. Consumer Discretionary
  2. Energy
  3. Materials
  4. Industrials
  5. Finance
  6. Technology
  7. Utility
  1. Consumer Staples
  2. Heath Care
  3. Real Estate

 

Exit mobile version