Directional Bias For The Day:
S&P Futures are higher- Drifting higher since 11:30 AM on October 6
- Odds are for an up to sideways day – watch for break below 2546.75 and below 2541.50 for change of fortunes
- Bond market closed due to Columbus Day
- No key economic data due:
Markets Around The World
- Markets in the East were either closed or mixed – Hong Kong was down; Sydney and Mumbai were up; Shanghai, Tokyo and Seoul were closed
- European markets are mixed – Germany, Spain, Italy, Switzerland and STOXX 600 are up; U.K. and France are down
- Currencies:
| Up |
Down |
- EUR/USD
- GBP/USD
- USD/JPY
- USD/CHF
- USD/CAD
|
- Dollar index
- AUD/USD
- NZD/USD
|
- Commodities are mostly down
| Up |
Down |
- NatGas
- Gold
- Silver
- Palladium
- Coffee
|
- Crude Oil
- Copper
- Platinum
- Sugar
- Cotton
- Cocoa
|
- 10-yrs yield is at 2.361% down from October 6 close of 2.370%; 30-years closed at 2.894% down from 2.906%
Key Levels:
- Critical support levels for S&P 500 are 2543.79, 2540.02 and 2535.37
- Critical resistance levels for S&P 500 are 2552.51, 2556.85 and 2560.69
- Key levels for eMini futures: break above 2550.75, the high of 4:00 PM on October 5 and break below 2546.75, the low of 2:30 AM
Pre-Open
- On Friday, at 4:00 PM, S&P future (December contract) closed at 2546.75 and the index closed at 2549.33 – a spread of about 2.50 points; futures closed at 2545.00 for the day; the fair value is +1.75
- Pre-NYSE session open, futures price action is to the upside – at 8:45 AM, S&P 500 futures were up by +4.25; Dow by +42.00; and NASDAQ by +15.50
Directional Bias Before Open
- Weekly: Up
- Daily: Up
- 120-Min: Up
- 30-Min: Up
The trend and patterns on various time frames for S&P 500 are:
| Monthly |
- Confirmed Uptrend
- Uptrend resumption since Feb 08, 2016 after a pull back of -15.2%
|
| Weekly: |
- A green candle hat is breaking away from previous one
- Last week’s pivot point 2540.75; R1=2561.09, R2=2572.86; S1=2528.98, S2=2508.64; R1/R2 ere breached; R1 has been breached for four weeks and R2 for two; support levels were breached only once in seven weeks, which was during the week ending on September 29
- An up week – fourth in last five weeks; seventh in last ten weeks
- Broke above a down sloping flag (2378.36) on April 24, which has bullish implications; first target is near 2520.00 and the second target is near 2640.00
- Broke above a down-sloping flag on November 14, 2016; first target of 2285.92 is achieved; second target is near 2467.50
- 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 small harami doji candle with almost no upper shadow
- Last pattern, a down-sloping flag in June that was broken to the upside on July 13, is re-asserted
- Above 20-day EMA, which is above 50-day EMA; Above 100-day SMA and 200-day SMA
- Pivot Point=2547.51; R1=2551.23, R2=2553.13; S1=2545.61, S2=2541.89; S1 was breached
- Confirmed Uptrend
|
| 2-Hour (e-mini future) |
- Knocking on the upper limit of a horizontal channel that is being formed since 10:00 AM on October 5 – high of 2550.75 was reached at 4:00 PM on October 5 and low of 2541.50 reached at 12:00 PM on October 6
- At 10:00 AM on September 29, broke above a horizontal channel – high 2506.00 and low 2487.50 – 100% extension target near 2524.50 is achieved; 161.8% extension target, near 2536.00, is also achieved; 200% extension, near 2544.00, is also achieved; 261.8% extension is near 2555.00
- Sequence of higher high and higher low since 12:00 PM September 5
- Above rising 20-bar EMA, which is above rising 50-bar EMA
|
| 30-Minute (e-mini future) |
- Drifting up from the low of 2541.50 since 11:30 AM on October 6
- Broke above a symmetrical triangle or a pennant; achieved the triangle target near 2540.75 and 2545.00; achieved the pennant targets near 2544.00 and 2549.25
- Up trend since the of low of 2485.00 at 11:00 AM on September 25;
- Above flattening 20-bar EMA, which is above rising 50-bar EMA
|
Previous Session
Most major U.S. indices declined on Friday October 6. NASDAQ Composite was up. The day’s range was small and most indices made a doji like pattern. Dow Jones Industrial Average, S&P 500 and Russell 2000 made harami candlestick pattern.
For the week, indices made a large green candle at all time highs with almost no upper shadow. Dow Jones Transportation Average made a doji near the middle of the range.
| Up |
Down |
- Consumer Discretionary
- Finance
- Technology
|
- Consumer Staples
- Energy
- Materials
- Industrials
- Utility
- Heath Care
- Real Estate
|
Most major U.S. indices declined on Friday October 6. NASDAQ Composite was up. The day’s range was small and most indices made a doji like pattern. Dow Jones Industrial Average, S&P 500 and Russell 2000 made harami candlestick pattern.
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