Directional Bias For The Day:

• The futures are higher after breaking above a resistance
• Odds are high for an up day
• On Monday at 4:00 PM, S&P future closed at 2180.50 and the index closed at 2182.64 – a spread of about 2.00 points
• Critical support levels for S&P 500 are 2179.25, 2175.13, and 2168.50
• Critical resistance levels for S&P 500 are 2185.15, 2189.56 and 2194.28
• Pre-NYSE session open, futures price action is to the upside; at 8:45 AM, S&P 500 future was up by +5.00, Dow was up by +47 and NASDAQ was up by +12.25

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

Monthly:	Up trend since Feb 08, 2016
Weekly:	Up trend since Feb 08, 2016 with one pullback; broke out of a 2-year trading range in July, 2016
Daily:	Uptrend since June 28th with one pullback;
2-Hour:	Uptrend – higher highs and higher lows since 10:00 AM on Aug 17 Broken above a symmetrical triangle – the upper limit connects the highs reached at 12:00 Noon on Aug 15 and at 4:00 AM on Aug 22, the lower limit connects the lows touched at  10:00 AM on Aug 17 and at 8:00 on Aug 22; the target near 2204; apex is at 2179.50 and the breakout point is 2184.50; the height of pattern is 25.25 points
30-Minute:	Broke above an ascending triangle (almost a rectangle trading range) – target near 2196.50; the breakout point is 2184.50 and the height of the patterns is 12 points

Before NYSE Session Open

Once again, the major US indices traded in a range on Friday. At the NYSE open, futures were almost in slight negative territory.

Similar to Friday, at open, S&P 500 started the day with a decline and reached a low of 2175.96 in the first half-hour of trading, which was day’s low too. After that it started to rise. It declined slightly mid-day before closing the day near the open. The index ended up making a doji candlestick pattern.

On Monday:

	Up	Down	Last	Notes
S&P 500		-1.23 or -0.1%	2182.64	A doji candle following a dragonfly doji on Friday A coil / symmetrical triangle on 30-minute chart
Dow Jones Industrial Average		-23.15 or -0.1%	22998.93
NASDAQ Composite	+6.22 or +0.1%		5244.60
Russell 2000	+2.97 or +0.2%		1239.74

Asian Session

Asian bourses were mixed on Tuesday:

	Up	Down	Last	Notes
Shanghai Composite	+4.90 or +0.16%		3089.71	A down-sloping flag is forming on 30-minute and daily charts
Hang Seng	+1.02 or +0.00%		18529.42
Nikkei 225		-100.83 or -0.61%	16497.26	Turned a 30 points gain mid-day to loss
S&P/ASX 200	+38.7 or +0.70%		5553.80	Large bullish engulfing candle 7-Day high range
Sensex	+4.67 or +0.02%		27990.21	In the middle of a rectangle trading range
Kospi Composite	+7.77 or +0.38%		2049.93	A green harami within a red candle

European Session

In pre-US session, the European stock markets are mostly higher at 8:00 AM and are near the highs reached at 4:00 AM EST.

	Up	Down	Last	Notes
DAX	+86.10 or +0.82%		10580.45	On a uptrend since 7:00 AM on Aug 22 2016 on 30-minute charts
FTSE-100	+42.01 or +0.62%		6870.65	It has been down four out of past five trading days
CAC-40	+34.86 or +0.79%		4425.33
IBEX	+104.7 or +1.24%		8573.10	Gap up open; at day’s high Mostly range bound for the past month
FTSE MIB	+319.98 or +1.95%		16689.12	Price and pattern similar to that of Spanish IBEX
Swiss Market Index	+45.55 or +0.56%		8203.40	Higher high and higher low on daily charts since Jun 24 2016
STOXX 600	+2.84 or +0.83%		343.27	Higher high and higher low on daily charts since Jun 24 2016

Currencies

	Up	Down	Last	Notes
US Dollar Index		-0.219	94.280	Broken below the lower bound of a symmetrical triangle on daily charts
EUR/USD	+22.1 pips		1.13418	Broke above a down-sloping flag on daily charts of Aug 16 and is staying above it
GBP/USD	+51.0 pips		1.31890
USD/JPY		-30.5 pips	100.017

Commodities

	Up	Down	Last	Notes
WTI Crude		-0.48 or -1.01%	46.93	a break below 45.84 will be bearish in the near term
Natural Gas	+0.041 or +1.53%		2.720	Crossing over the falling 20-D EMA
Gold	+4.5 or +0.36%		1348.20	Struggling to stay above 20-D EMA Forming a symmetrical triangle on daily charts near 2-year high
Silver	+0.156 or +0.83%		19.015	Broken below a symmetrical triangle on daily charts near 2-year high on Friday; target near 17.67; support near 17.105
Copper		-0.0105 or -0.49%	2.1295	In a down-sloping narrow band on weekly charts since Feb 2016 near the 9-year lows

Yields

• U.S. Treasury yields are mixed for the day so far
• 30-year yield is down by -0.4 basis points to 2.232% and 10-year is up by -0.10 basis points to 1.549%

Pivot Levels:

S&P 500 is above its 10-D EMA, 10-D EMA is above 20-D EMA and its 20-D EMA is trending above 50-D EMA since March 9, 2016.

	S&P 500 Cash		eMini Futures
Daily	Level	Break Chance	Level	Break Chance
Pivot	2181.38		2179.42
R1	2186.10	59%	2185.08	55%
R2	2189.56	43%	2190.17	32%
R3	2194.28	47%	2195.83	27%
S1	2177.92	36%	2174.33	36%
S2	2173.20	34%	2168.67	27%
S3	2169.74	24%	2163.58	19%

Note: The probability of a level breaking is shown above is for the current condition when the price is above 20-D EMA, 10-D EMA is above 20-D EMA and 20-D EMA is above 50-D EMA. R2 break chance comes in picture only when R1 is broken. So are the probabilities calculated for R3, S2 and S3