S&P Futures are higher; moving sideways since 4:30 PM on Monday near all time highs
Odds are for a sideways day, with an up bias – watch for break above 2667.75 and break below 2663.50
Key economic data:
PPI (0.4% vs. 0.4% est.) at 8:30 AM
Core PPI (0.3% vs. 0.2% est.) at 8:30 AM
Markets Around The World
Markets in the East closed mostly lower – Sydney is higher
European markets are mostly higher – Spain is lower
Currencies:
Up
Down
Dollar index
GBP/USD
USD/CHF
AUD/USD
NZD/USD
USD/CAD
EUR/USD
USD/JPY
Commodities:
Up
Down
Crude Oil
Coffee
Cotton
NatGas
Gold
Silver
Copper
Platinum
Palladium
Sugar
Cocoa
10-yrs yield is at 2.394% up from December 11 close of 2.385%; 30-years is at 2.770% up from 2.771%; 2-years yield is at 1.843%; the 10Year-2Year spread is at 0.551
Key Levels:
Critical support levels for S&P 500 are 2652.67, 2644.10 and 2632.71
Critical resistance levels for S&P 500 are 2665.19, 2671.92 and 2687.41
Key levels for eMini futures: break above 2667.75, the high of 4:30 PM on Monday and break below 2663.50, the low of 3:30 AM
Pre-Open
On Monday, at 4:00 PM, S&P future (March contract) closed at 2663.50 and the index closed at 2659.99 – a spread of about 3.50 points; futures closed at 2664.50 for the day; the fair value is -1.00
Pre-NYSE session open, futures price action is to the upside – at 8:30 AM, S&P 500 futures were up by +2.25; Dow by +55.00; and NASDAQ down by -2.25
Directional Bias Before Open
Weekly: Up
Daily: Up
120-Min: Up
30-Min: Up-to-Side
15-Min: Up
The trend and patterns on various time frames for S&P 500 are:
The week ending on December 8 was a small red candle with small upper shadow and larger lower shadow
Last week’s pivot point 2647.15; R1=2669.54, R2=2687.59; S1=2629.10, S2=2606.71; No levels were breached
An up week; third in last five weeks and eight in last ten weeks
Broke above a down sloping flag on April 24 2017;
flag-low was 2322.25 during 27-Mar-17 week; shorter flag-pole length is 317.19 and longer flag-pole length is 590.88;
100% extension target of shorter flag-pole near 2639.41 is achieved; and the 161.8% extension target is near 2835.46
61.8% extension target of longer flag-pole is near 2687.41
Broke above a down-sloping flag on November 14, 2016;
the flag low was 2083.79 during 31-Oct-16 week; the shorter flag-pole length is 202.13 and the longer flag-pole length is 383.71;
261.8% extension target of shorter flag-pole near 2612.97 is achieved
the 161.8% extension target of longer flag-pole is near 2704.63
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 green candle with almost no upper and lower shadows; gap-up at the open that did not fill
RSI-14 divergence – on October 20 the RSI was 79.65 and the 2578,29, on November 8 the high was 2595.47 and the RSI was 72.50; on November 30, RSI-14 was 76.67 and the index was at 2657.74; RSI is rising and approaching the previous high
Last pattern, a down-sloping flag in June that was broken to the upside on July 13; in August the index declined and tested the broken upper limit of the flag
Above 20-day EMA but above 50-day EMA; Above 100-day SMA and 200-day SMA
Pivot Point=2657.26; R1=2663.06, R2=2666.12; S1=2654.20; S2=2648.40; R1/R2 were breached
Confirmed Uptrend
2-Hour (e-mini future)
Drifting higher since 2:00 AM on December 6 in stairs from near the uptrend line from the lows of November 15; at the all time high
14-bar RSI continues to flash divergence – on November 21 the future was at 2600.50 and the RSI was at 75.8, on Sunday the future was at 2603.50 and the RSI at 64.47; on December 4 the RSI-14 was 66.12 and the price was at 2665.25; RSI is rising now
Sequence of higher highs and higher lows since 10:00 AM on November 2 and since August 29 with few exceptions is reasserted on November 21; it is again under pressure
Above a rising 20-bar EMA, which is above a rising 50-bar EMA
30-Minute (e-mini future)
Near a resistance level, the all time high of 2665.25
moving sideways since 4:30 PM on Monday
At a flattening 20-bar EMA, which is above rising 50-bar EMA
15-Minute (e-mini future)
Envelop and Bollinger Band are mostly moving up since December 6 morning
The Bollinger Band (20 EMA, 2 stddev.) contracted at 11:30 PM on Monday and is expanding since 4:00 AM; contained within the envelop (20 EMA, 0.196%)
The Stochastic (9, 1, 3) is falling after reaching 100 at 7:15 AM and %K has crossed below %D
Above 20-bar EMA, which is above 50-bar EMA
Previous Session
Major U.S. indices closed mixed on Monday December 11. Dow Jones Transportation Average and Russell 2000 closed down. Dow Jones Industrial Average, S&P 500, NYSE Composite and Wilshire 5000 Total Market Index gapped up at the open and closed higher without filling the gap.