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; the daily bias is down; elevated volatility – watch for a break above 3410.00 and break below 3392.50 for clarity
• Key economic data report:
  • Core Durable Goods ( 0.8% vs. 0.3% est.; prev.0.6% ) at 8:30 AM
  • Durable Goods ( 1.9% vs. 0.5% est.; prev.0.5%) at 8:30 AM
  • HPI ( 0.7% est.; prev. 1.0%) at 9:00 AM
  • S&P/CS Composite-20 HPI (4.2% est.; prev. 3.9%) at 9:00 AM
  • CB Consumer Confidence ( 102.1 est.; prev. 101.8) at 10:00 AM
  • Richmond Manufacturing Index ( 18 est.; prev. 21) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3402.01, 3382.65, and 3364.86
• Critical resistance levels for S&P 500 are 3415.34, 3441.42, and 3465.60
• Key levels for E-mini futures: break above 3410.00, the high of 6:30 AM and break below 3392.50, the low of 4:00 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (December 2020) closed at 3394.50 and the index closed at 3400.97 – a spread of about -6.50 points; futures closed at 3393.50 for the day; the fair value is +1.00
• Pre-NYSE session open, futures are higher – at 8:15 AM, S&P 500 futures were up by +13.75; Dow by +77, and NASDAQ by +65.00

Markets Around The World

• Markets in the East closed mostly lower – Shangai and Mumbai closed higher
• European markets are lower;
• 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 Silver Copper Platinum Sugar Coffee Cotton	Gold Palladium Cocoa

• Bond
  • 10-years yield closed at 0.801%, down from October 23 close of 0.841%;
  • 30-years is at 1.594% down from 1.645%
  • 2-years yield is at 0.153% down from 0.170%
  • The 10-Year-&-2-Year spread is at 0.648 down from 0.671
• VIX
  • Is at 32.16; down -0.30 from October 26 close; above 5-day SMA;
  • Recent high =  38.28 on September 4; low = 24.03 on October 9
  • Sentiment: Risk-Off to Neutral

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

Previous Session

Major U.S. indices closed lower on Monday, October 26 in higher volume. Indices are in a downtrend in Daily timeframe since October 12. Indices opened lower for the week on Monday and then traded down before recouping some of the losses in the final hours of trading. All S&P sectors closed down.

From Briefing.com:

The S&P 500 fell 1.9% on Monday on familiar concerns surrounding the economy, although it was down as much as 2.9% intraday. The Nasdaq Composite declined 1.6%, the Dow Jones Industrial Average declined 2.3%, and the Russell 2000 declined 2.2%. […] Accordingly, the cyclical energy (-3.5%), industrials (-2.5%), materials (-2.5%), and financials (-2.2%) sectors were among the day’s laggards but so was the information technology sector (-2.2%), which typically benefits from growth concerns. The utilities sector (-0.1%) finished just below its flat line. Conversely, longer-dated Treasuries moved higher in a safe-haven bid, which pushed yields lower. The 10-yr yield declined four basis points to 0.80%, while the 2-yr yield was unchanged at 0.16%. The U.S. Dollar Index advanced 0.3% to 93.07. WTI crude futures fell 3.3%, or $1.30, to $38.58/bbl, which weighed on energy stocks. […] New home sales decreased to 959,000 in September (Briefing.com consensus 1.022 mln) from a downwardly revised 994,000 (from 1,011,000) in August. This represents a m/m decline of 3.5%, but a yr/yr increase of 32.1%. […] Nasdaq Composite +26.6% YTD S&P 500 +5.3% YTD Dow Jones Industrial Average -3.0% YTD Russell 2000 -3.8% YTD