Directional Bias For The Day:

• S&P Futures are higher;
• The odds are for a sideways to an up day – watch for break below 3072.50 for change of fortune
• Key economic data due:
  • Final Service PMI ( 51.0 est.; prev. 51.0) at 9:45 AM
  • ISM Non-Manufacturing PMI ( 53.5 est. ; prev. 52.6) at 10:00 AM
  • JOLTS Opening ( 7.06M est.; prev. 7.05M) at 10:00 AM
  • IBD/TIPP Economic Optimism ( 53.2 est.; prev. 52.6 )

Directional Bias Before Open:

Weekly: Uptrend Daily: Confirmed Uptrend 120-Min: Up

30-Min: Side-Up 15-Min: Side 6-Min: Side

Key Levels:

• Critical support levels for S&P 500 are 3074.90, 3066.72 and 3050.72
• Critical resistance levels for S&P 500 are 3084.02, 3089.78 and 3094.35
• Key levels for eMini futures: break above 3085.75, the high of 6:30 PM and break below 3077.00, the low of 8:00 PM

Pre-Open

• On Monday, at 4:00 PM, S&P future closed at 3076.50 and the index closed at 3078.27 – a spread of about -1.75 points; futures closed at 3075.75 for the day; the fair value is +0.75
• Pre-NYSE session open, futures are higher – at 8:45 AM, S&P 500 futures were up by +7.25; Dow down by +86 and NASDAQ by +22.25

Markets Around The World

• Markets in the East closed mostly higher – Mumbai was down
• European markets are mostly higher – Switzerland is lower
• Currencies:
  

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

• Commodities:
  

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

• Bonds
  • 10-yrs yield is at 1.837%, up from November 4 close of 1.786%;
  • 30-years is at 2.323%, up from 2.273%
  • 2-years yield is at 1.617%, up from 1.581%
  • The 10-Year-&-2-Year spread is at 0.220 up from 0.205
• VIX
  • Is at 12.96 up from November 4 close of 12.83; above 5-day SMA 12.726
  • Recent high was 13.95 on October 31; recent low was 12.19 on October 31

The trend and patterns on various time frames for S&P 500:

Monthly	Uptrend resumed September was a green candle with small upper shadow and lower shadow longer than the real body Stochastic %K is above %D and above 90 RSI-9 is breaking above a downtrend line from January 2018 high; Rising to the upper band from near the middle band of the 120-month regression channel Sequence of higher highs and higher lows since February 2016 is broken in December since then a new high has been made in May 2019
Weekly:	The week ending on November 1 was a large green candle with almost no upper shadow and small lower shadow At the upper bound of a broadening pattern Stochastic (9,1, 3): %K is above %D; above 90; RSI (9) has turned up and near 70 Last week was up +44.36 or +1.5%; the 5-week ATR is 73.63 Last week’s pivot point=3052.35, R1=3081.51, R2=3096.11; S1=3037.75, S2=3008.59; R1/R2 pivot levels were breached An up week; fourth in last five weeks and seventh in last ten weeks Last swing low, 2728.81, was the low on June 3, 2018; last swing high was 3027.98, made during the week of July 22 Above 10-week EMA; above 39-week SMA and 89-week SMA Uptrend
Daily	A small doji candle that gapped up at the open; %K is crisscrossing %D above 80 RSI-9 is below 8-day SMA Above 20-day EMA, 50-day EMA, 100-day SMA and 200-day SMA; Uptrend
2-Hour (e-mini future)	Drifting mostly sideways since 8:00 AM on Monday within a ten point band; uptrend since October 9 RSI-21 moving along 70 since 2:00 PM on November 1 %K is crisscrossing %D higher Above 20-bar EMA, which is above EMA10 of EMA50 Bias: Up
30-Minute (e-mini future)	Moving sideways since 5:00 AM on Monday RSI-21 moving between 50 and 65 %K is crisscrossing %D At/above 20-bar EMA, which is above EMA10 of EMA50 Bias: Side-Up
15-Minute (e-mini future)	Bollinger Band (20, 2.0) is moving sideways since 6:00 AM on Monday The Bollinger Band narrowed, relatively, from 1:45 AM to 4:45 AM; expanding slightly since Stochastic (9, 1, 3): %K is crisscrossing %D higher Bias: Side

Previous Session

Most major U.S. indices closed at all times highs on Monday, November 4 in mixed volume. Russell 2000 and Dow Jones Transportation Average did not make all time highs. S&P 500, Russell 2000 and NASDAQ Composite traded in lower volume.

From Briefing.com:

The S&P 500 (+0.4%) and Nasdaq Composite (+0.6%) continued to set new highs on Monday, with the Dow Jones Industrial Average (+0.4%) finally breaking above its prior high from July following some positive-sounding trade comments. The Russell 2000 (+0.5%) kept pace with the large-cap indices.

[…]

The S&P 500 industrials (+1.2%), financials (+0.9%), and materials (+0.8%) sectors followed suit with gains that were also more than the benchmark index, as did the Dow Jones Transportation Average (+2.3%) and Philadelphia Semiconductor Index (+2.2%).

On the other hand, losses in the defensive-oriented utilities (-1.3%), real estate (-1.1%), consumer staples (-0.9%), and health care (-0.4%) sectors restrained further gains in the broader market.

[…]

U.S. Treasuries ended the session lower, as the risk-on trading sentiment in the stock market decreased demand for the safe-haven asset class. The 2-yr yield increased three basis points to 1.59%, and the 10-yr yield increased six basis points to 1.79%. The U.S. Dollar Index advanced 0.3% to 97.55.

Monday’s economic data was limited to the Factory Orders report for September, which declined 0.6% (Briefing.com consensus -0.5%) following an unrevised 0.1% decline in August.