S&P Futures are lower; moving further lower since 7:30 AM; broke below a descending triangle on 15-minute chart with 100% extension target near 2862.00 level
Odds are for a down day with volatility – watch for break above 2889.50 for change of fortune
Key economic data due:
PPI ( 0.2% vs. 0.2% est.) at 8:30 AM
Core PPI ( 0.2% vs. 0.2% est.) at 8:30 AM
Markets Around The World
Markets in the East closed mostly higher – Seoul and Singapore were down
European markets are mostly down – Italy and Switzerland are up
Currencies:
Up
Down
Dollar index
EUR/USD
GBP/USD
USD/JPY
USD/CHF
USD/CAD
USD/INR
AUD/USD
NZD/USD
Commodities:
Up
Down
NatGas
Gold
Silver
Palladium
Coffee
Cocoa
Crude Oil
Copper
Platinum
Sugar
Cotton
Bonds
10-yrs yield is at 3.228%, up from October 9 close of 3.208%;
30-years is at 3.390%, up from 3.370%
2-years yield is at 2.910%, up from 2.885%
The 10-Year-&-2-Year spread is at 0.319, down from 0.323
Key Levels:
Critical support levels for S&P 500 are 2874.27, 2862.08 and 2854.03
Critical resistance levels for S&P 500 are 2894.83, 2903.04 and 2909.40
Key levels for eMini futures: break above 2890.50, the high of 3:00 AM and break below 2879.00, the low of 9:30 AM on Tuesday
Pre-Open
On Tuesday, at 4:00 PM, S&P future (December contract) closed at 2885.75 and the index closed at 2880.34 – a spread of about +5.25 points; futures closed at 2888.25 for the day; the fair value is -2.50
Pre-NYSE session open, futures price action is to the downside – at 8:15 AM, S&P 500 futures were down -5.75; Dow by -29.00; and NASDAQ by -36.25
Directional Bias Before Open
Weekly: Uptrend Under Pressure
Daily: Uptrend Under Pressure
120-Min: Down
30-Min: Down-Side
15-Min: Down-Side
6-Min: Side
The trend and patterns on various time frames for S&P 500 are:
The week ending on October 5 was a large bearish engulfing candle which closed below past two weeks’ low
Stochastics (9,1, 3) and RSI (14) made bearish divergences
Last week’s pivot point=2898.24, R1=2927.19 R2=2968.81; S1=2856.62, S2=2827.67; S1/R1 pivot levels were breached;
Second down week in a row; third in last five weeks and fourth in last ten weeks
Broke above an ascending triangle but retraced back to its upper limit; 100% extension target is near 3070.00 level
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 2639.44 and the 161.8% extension target near 2835.46 are achieved; the 261.8% extension target is near 3013.72
61.8% extension target of longer flag-pole near 2687.41 is achieved; the 100% extension target is near 2913.13
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 near 2704.63 is achieved; the 261.8% extension target is near 3088.34
Last swing low, 2322.25, was the low on March 27, 2017; Last swing high, 2872.87, was during the week of January 22, 2-018; the low since the last swing high is 2532.69 during the week if February 5, 2018
At 10-week EMA; above 39-week SMA and above 89-week SMA
Uptrend Under Pressure
Daily
A relatively small red doji candle with small upper shadow and smaller lower; continue the bounce off the support zone near 2850.-2870 level;
%K crossed below %D after one staying above it
Below 20-day EMA; at/above 50-day EMA; above 100-day SMA and 200-day SMA
Uptrend Under Pressure
2-Hour (e-mini future)
Breaking above a down trendline from October 3 high but by moving sideways; bounced off the support made by the low on September 7
RSI-9 rising from a low of 19.95 on October 4 and after making a bullish divergence at 10:00 AM on October 8; crossed above 40 at 6:00 AM on October 9
Below 20-bar EMA, which is below EMA10 of EMA50
Bias: Down
30-Minute (e-mini future)
Moving sideways since 1:00 PM on October 9 between 2893.00 and 2881.00; also moving mostly sideways since 11:00 AM on October 5 between 2898.00 and 2866.00
RSI-9 between 40 an d65 since 8:00 AM on October 9
At 20-bar EMA, which is At/below 50-bar EMA
Bias: Down-Side
15-Minute (e-mini future)
Bollinger Band (20, 2.0) is mostly moving sideways since 6:00 PM on Tuesday
The band was narrow from 7:30 PM to 10:30 PM; expanding slightly
RSI-9 mostly between 40 and 65 since 8:15 AM on October 9; rising from just below 40 since 4:00 AM; just above 50
The Stochastic (9, 1, 3): %K is crossed above %D from 0 at 4:15 AM; crisscrossing %D upwards; above 90
Bias: Down-Side
Previous Session
Major U.S. indices closed mostly lower on Tuesday October 9 in mixed volume. NASDAQ Composite was higher. Dow Jones Industrial Average and Dow Jones Transportation Average traded in higher volume. Five S&P sectors – Energy, Technology, Utility, Healthcare and Real Estate – closed were higher for the day.
From Briefing.com:
U.S. stocks waffled on Tuesday amid concerns about growth, rising interest rates, and the impending arrival of Hurricane Michael in Florida’s panhandle. The broader market seemed reluctant to make a decisive move in any direction, as the S&P 500 index crossed back and forth across the unchanged line numerous times during the trading session.
