Directional Bias For The Day:

• S&P Futures are higher
• Drifting higher since 8:30 PM on October 30; at a down trend line from the high of 2580.75 on October 27
• Odds are for an up to sideways day – watch for break above 2575.00 and below 2471.00 for change of fortunes
• Key economic data due:
  • Employment Cost Index (0.7% vs. 0.7% est.) at 8:30 AM

Markets Around The World

• Markets in the East closed mostly lower –  Shanghai and Seoul were up
• European markets are mostly higher – Italy is down; Germany is closed
• Currencies:
  

  Up	Down
  Dollar index GBP/USD USD/JPY USD/CHF USD/CAD	EUR/USD AUD/USD NZD/USD

• Commodities are mostly down
  

  Up	Down
  Platinum Palladium	Crude Oil NatGas Gold Silver Copper Sugar Coffee Cotton Cocoa

• 10-yrs yield closed at 2.370% on October 30 down from October 27 close of 2.428%; 30-years closed at 2.880% down from 2.936%

Key Levels:

• Critical support levels for S&P 500 are 2568.25, 2565.94 and 2559.80
• Critical resistance levels for S&P 500 are 2580.03, 2582.98 and 2585.48
• Key levels for eMini futures: break above 2573.75, the high of 7:30 AM and break below 2571.25, the low of 7:00 AM

Pre-Open

• On Monday, at 4:00 PM, S&P future (December contract) closed at 2569.00 and the index closed at 2572.83 – a spread of about 2.75 points; futures closed at 2568.25 for the day; the fair value is -0.75
• Pre-NYSE session open, futures price action is to the upside – at 8:30 AM, S&P 500 futures were up by +5.00; Dow by +29.00; and NASDAQ by +24.00

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 near doji candle close to all time high; Last week’s pivot point 2569.35; R1=2594.70, R2=2608.33; S1=2555.72, S2=2530.37; S1 was breached after three weeks An up week – seventh in last five weeks; ninth 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 red harami candle with large body green candle that gapped up from previous one 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=2573.70; R1=2579.16, R2=2585.48; S1=2567.38, S2=2561.92; S1 was breached Confirmed Uptrend
2-Hour (e-mini future)	Drifting lower since the high of 2580.75 was made at 2:00 PM on October 27; bouncing off the 20-bar EMA In a horizontal channel – high of 2577.25 and low near 2542.50; approaching the upper limit after a brief retreat from it Sequence of lower highs and lower lows since 6:00 PM October 22 has broken; a new reverse sequence hasn’t yet established Above flattening 20-bar EMA, which is above flattening 50-bar EMA
30-Minute (e-mini future)	Slight upward move since 12:00PM on October 30; nearing the down trend line form the high of 2580.75 on October 27 Above a recently rising 20-bar EMA, which is crossing above a recently rising 50-bar EMA

Previous Session

Major U.S. indices declined on Monday October 30. S&P 500 declined for the third times on Monday in last five weeks. It was up four times on Friday during this period.

S&P 500 and Wilshire 5000 Total Market Index made a red harami candle within a large green candle. NASDAQ Composite made a harami doji near Friday’s close. Russell 2000 made a bearish engulfing pattern.

• S&P 500 Sectors

Up	Down
Energy Technology Utility Real Estate	Consumer Discretionary Consumer Staples Materials Industrials Finance Heath Care