Directional Bias For The Day:

• The futures are slightly higher after regaining the break above a resistance
• Odds are for a sideways than a trend day with price feeling up pressure
• On Tuesday at 4:00 PM, S&P future closed at 2185.00 and the index closed at 2186.90 – a spread of about 2.00 points

Key Levels:

• Critical support levels for S&P 500 are 2183.17, 2175.13, and 2178.04
• Critical resistance levels for S&P 500 are 2189.56, 2193.42 and 2197.90
• Pre-NYSE session open, futures price action is slightly to the upside; at 8:00 AM, S&P 500 future was up by +1.25, Dow was up by +8 and NASDAQ was up by +4.25

Economic Data:

• U.S. Existing Sales at 10:00 AM – estimated=5.52M; previous=5.57M

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; Tuesday was a gravestone doji day near all time high Mostly sideways move since August 5.
2-Hour (e-mini future)	Uptrend – higher highs and higher lows; last swing low 2173.50 The beak above a symmetrical triangle at 4:00 AM on Aug 23 faced resistance at 2190.75 Emergence of an ascending triangle – break-off level is above 2191.50 (highs at 12:00 PM on Aug 15 and at 10:00 AM on Aug 23); the lower limit connects by lows at 10:00 AM on Aug 17 (2165.5) and at 8:00 AM on Aug 22 (2173.50); the height is 26 points
30-Minute (e-mini future)	Still making higher highs and higher lows – last swing low 2180.75 after the swing high of 2191.50 Broken above a down trending line since Aug 23 2016 10:00 AM high A bullish engulfing reversal at 3:00 AM – European open – with a low of 2180.75 that tested the Aug 23 2:30 AM low of 2181.25

Before NYSE Session Open

Major U.S. indices open the day with a gap and reached the day’s high in the first hour of trading and then trade lower. Dow Jones Industrial Average gave most of its gap whereas S&P 500 and NASDAQ have not filled the gap. All three closed near the lows for the day. Russell 2000 did not follow this pattern and had a better outcome that others.

On Tuesday:

	Up	Down	Last	Notes
S&P 500	+4.26 or +0.2%		2186.90	A gravestone doji Day’s high 2193.42 – all time high 2193.81
Dow Jones Industrial Average	+17.88 or +0.1%		18547.30	A gravestone doji Closed 84 points below day’s high
NASDAQ Composite	+15.48 or +0.3%		5260.08	Gap from Monday
Russell 2000	+8.84 or +0.7%		1248.58	Highest since Jul 2015

Asian Session

Asian bourses were mixed on Wednesday:

	Up	Down	Last	Notes
Shanghai Composite		-3.83  (-0.12%)	3085.88	A down-sloping flag is forming on 30-minute and daily charts
Hang Seng		-178.15  (-0.77%)	22820.78	Bearish engulfing on Wednesday
Nikkei 225	+99.94 (+0.6%)		16597.30
S&P/ASX 200	+7.9 (+0.14%)		5561.70	Following a large bullish engulfing candle
Sensex	+69.73 (+0.02%)		28059.94	In the middle of a rectangle trading range
Kospi Composite		-6.17  (-0.3%)	2043.76	Gave up almost all the gains of Tuesday

European Session

In pre-US session, the European stock markets are mostly higher at 8:30 AM and are near the highs reached at 4:00 AM EST. Most opened with a gap-down following an up Tuesday.

	Up	Down	Last	Notes
DAX	+53.59 (+0.51%)		10646.47	On a uptrend since 7:00 AM on Aug 22 2016 on 30-minute charts
FTSE-100		-13.48 (-0.23%)	6853.00	It has been down four out of past six trading days Tuesday was bullish engulfing
CAC-40	+28.44 (+0.6%)		4449.89	A bullish engulfing of a positive Tuesday
IBEX	+83.10 (+1.00%)		8664.30	A bullish engulfing of a positive Tuesday
FTSE MIB	+146.02 (+0.9%)		16924.07
Swiss Market Index	+17.34 (+0.2%)		8218.95	A bullish engulfing of a positive Tuesday
STOXX 600	+1.93 (+0.6%)		345.53

Currencies

	Up	Down	Last	Notes
US Dollar Index	+0.276		94.770
EUR/USD		-52.4 pips	1.12544
GBP/USD	+41.0 pips		1.32410
USD/JPY	+15.4 pips		100.336

Commodities

	Up	Down	Last	Notes
WTI Crude		-0.75 (-1.56%)	47.35	a break below 45.84 will be bearish in the near term
Natural Gas	+0.021 (+0.76%)		2.782	Crossed over the 20-D EMA
Gold		-13.0 (-0.97%)	1333.10	Crossing below 20-D EMA Breaking below a symmetrical triangle on daily charts near 2-year high
Silver		-0.232 (-1.23%)	18.690	Broken below a symmetrical triangle on daily charts near 2-year high on Friday; target near 17.67; support near 17.105
Copper		-0.0150 (-0.71%)	2.1000	Broken support – 2.1215 low of Jul 11 2016

Yields

• U.S. Treasury yields are down for the day so far
• 30-year yield is down by -0.3 basis points to 2.233% and 10-year is down by -0.5 basis points to 1.548%

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	2189.04		2185.33
R1	2191.28	59%	2191.42	55%
R2	2195.66	43%	2197.58	32%
R3	2197.90	46%	2203.67	27%
S1	2184.66	36%	2179.17	36%
S2	2182.42	34%	2173.08	27%
S3	2178.04	24%	2166.92	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