Directional Bias For The Day:

• S&P Futures are higher;
• The odds are for an up day with a good chance of sideways to down move from pre-open levels around 3550.00 – watch for a break above 3556.25 and break below 3532.00 for clarity
• Key economic data due:
  • ADP Non-Farm Employment Change ( 428K vs. 1250K est. ; prev. 212K) at 8:15 AM
  • Factory Orders ( 6.0% est.; prev.6.2%) at 10:00 AM

Directional Bias Before Open:

Weekly: Uptrend Daily: Uptrend

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

Key Levels:

• Critical support levels for S&P 500 are 3528.03, 3516.44, and 3506.26
• Critical resistance levels for S&P 500 are 3549.86, 3560, and 3571.68
• Key levels for E-mini futures: break above 3556.25, the high of 6:00 AM and break below 3532.00, the low of 9:00 PM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (September 2020) closed at 3535.00 and the index closed at 3526.65 – a spread of about -1.75 points; futures closed at 3537.00 for the day; the fair value is -2.00
• Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +10.00; Dow down by +108 and NASDAQ up by +84.00

Markets Around The World

• Markets in East closed mostly higher – Shanghai and Hong Kong closed down
• European markets are higher
• Currencies:
  

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

• Commodities:
  

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

• Bond
  • 10-yrs yield is at 0.679%, up from September 1 close of 0.672%;
  • 30-years is at 1.430% up from 1.425%
  • 2-years yield is at 0.133% up from 0.125%
  • The 10-Year-&-2-Year spread is at 0.546 down  from 0.547
• VIX
  • Is at 25.95; down -0.17 from September 1 close; above 5-day SMA;
  • Recent high 33.67 on July 14; low 20.28 on August 11
  • Sentiment: Risk-Neutral

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

Monthly	Uptrend Resumed August 2020 was a green candle with almost small upper shadow and almost no lower shadow; Stochastic %K is above %D and above 90; %K Bearish Divergence in January RSI-9 rising near 70; breaking above a downtrend line from January 2018 high Rising above the upper band of the 120-month regression channel for the first time after February 2020; broke below the lower channel in march 2020 The sequence of higher highs and higher lows is resumed
Weekly:	The week ending on August 28 was a relatively large green candle with almost no upper and lower shadows Stochastic (9,1, 3): %K crisscrossing %D; above 90 RSI (9) is rising above 75 The week was up +110.85 or +3.3%; the 5-week ATR is 73.65 The weekly week pivot point=3476.79, R1=3540.45, R2=3572.89; S1=3444.35, S2=3380.69; R1/R2/R3 pivot levels were breached An up week; fifth in last five weeks and eight in last ten weeks Made all-time closing and intraday highs; last swing low 2965.66 made during the week of June 15 Above 10-week EMA, 39-week SMA and 89-week SMA Uptrend since March 23
Daily	A green candle that is breaking above the recent sideways move; %K is crisscrossing %D; above 90 RSI-9 is turning up; above 80; above 8-day RSI Above 20-day EMA; above 200-day SMA, above 50-day EMA; above 100-day Uptrend
2-Hour (E-mini futures)	Moving up after brief dip on August 31; all-time high at 6:00 AM RSI-21 turned down from above 80 Above EMA20, which is above EMA10 of EMA50 Bias: Up
30-Minute (E-mini futures)	Moving up after a brief sideways move on Monday RSI-21 turning down from above 75 %K is below %D Above EMA20, which is above EMA10 of EMA50 Bias: Up
15-Minute (E-mini futures)	Bollinger Band (20, 2.0) moving up since 9:15 PM on Sunday The Bollinger Band narrowing since 7:00 AM; price walking down the lower band Stochastic (9, 1, 3): %K is crisscrossing %D lower Bias: Up

Previous Session

Major U.S. indices closed higher on Tuesday, September 1 in mixed volume. NASDAQ Composite and Dow Jones Transportation Average traded in higher volume. NASDAQ Composite also made an all-time closing high. S&P 500 and Wilshire 5000 Total Market Index made all-time closing and intraday highs.

From Briefing.com:

The S&P 500 (+0.8%) and Nasdaq Composite (+1.4%) rallied to fresh record highs on Tuesday, with the Nasdaq getting an added boost from the momentum in the mega-caps and growth stocks. The wealth spread around to the Russell 2000 (+1.1%) and Dow Jones Industrial Average (+0.8%), too. […] The manufacturing data helped lift the S&P 500 materials (+2.8%) and industrials (+1.0%) sectors into positive territory with the information technology (+1.9%), communication services (+1.0%), and consumer discretionary (+1.1%) sectors. Each advanced at least 1.0%. Conversely, the utilities (-1.1%), health care (-1.0%), and energy (-0.9%) sectors underperformed and declined around 1.0%. […] U.S. Treasuries ended the day higher after reclaiming overnight losses. The 2-yr yield declined two basis points to 0.11%, and the 10-yr yield declined two basis points to 0.67%. The U.S. Dollar Index increased 0.2% to 92.34 after being down 0.4% in the morning. WTI crude futures increased 0.3%, or $0.14, to $42.76/bbl. […] The ISM Manufacturing Index for August increased to 56.0% (Briefing.com consensus 54.5%) from 54.2% in July. The dividing line between expansion and contraction is 50.0%. The August reading is the highest level for the index since January 2019. The key takeaway from the report is that it is a reflection of an encouraging rebound in manufacturing activity following the sharp contraction seen in April and May. Total construction spending increased 0.1% m/m in July (Briefing.com consensus +1.0%) on the heels of an upwardly revised 0.5% decline (from -0.7%) in June. Total private construction spending rose 0.6% and total public construction spending fell 1.3%. […] Nasdaq Composite +33.1% YTD S&P 500 +9.2% YTD Dow Jones Industrial Average +0.4% YTD Russell 2000 -5.4% YTD ..NYSE Adv/Dec 1875/1085. ..NASDAQ Adv/Dec 1790/1534.