Directional Bias For The Day:

• S&P Futures are higher;
• The odds are for an up day; good chance of  sideways to up move from pre-open levels around 3340.00; the daily bias is down; elevated volatility – watch for a break above 3349.75 and break below 3311.00 for clarity
• Key economic data report:
  • Factory Orders ( 1.0% est.; prev. 0.7% ) at 10:00 AM

Directional Bias Before Open:

Weekly: Uptrend Under Pressure Daily: Uptrend Under Pressure

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

Key Levels:

• Critical support levels for S&P 500 are 3330.14, 3310.80, and 3279.74
• Critical resistance levels for S&P 500 are 3364, 3388.71, and 3409.51
• Key levels for E-mini futures: break above 3349.75, the high of 4:30 AM and break below 3311.00, the low of 11:30 PM

Pre-Open

• On Monday at 4:00 PM, S&P futures (December 2020) closed at 3301.75 and the index closed at 3310.24 – a spread of about -9.50 points; futures closed at 3300.50 for the day; the fair value is +1.25
• Pre-NYSE session open, futures are higher – at 8:45 AM, S&P 500 futures were up by +38.50; Dow by +416, and NASDAQ by +68.00

Markets Around The World

• Markets in the East closed higher – Tokyo was closed for trading
• European markets are higher
• Currencies:
  

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

• Commodities:
  

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

• Bond
  • 10-years yield closed at 0.849%, down from October 30 close of 0.860%;
  • 30-years is at 1.624% down from 1.640%
  • 2-years yield is at 0.168% down from 0.170%
  • The 10-Year-&-2-Year spread is at 0.681 down from 0.690
• VIX
  • At 35.92 @ 6:30 AM; down -1.21 from the last close; below 5-day SMA;
  • Recent high =  41.16 on October 16; low =  24.03 on October 9
  • Sentiment: Risk-On to Neutral

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

Monthly	Uptrend under pressure October 2020 was a red candle with long upper shadow and smaller lower shadows; Stochastic %K is below %D from above 90; potential %D Bearish Divergence RSI-9 below 60 from near 70; below a downtrend line that it broke above briefly in August Retreating from the upper band of a 120-month regression channel; The sequence of higher highs and higher lows is resumed
Weekly:	The week ending on October 30 was a large red candle with almost no upper shadow and a small lower shadow Stochastic (9,1, 3): %K is below %D; below 20 RSI (9) is below 50 The week was down -195.43 or -5.6%; the 5-week ATR is 132.02 The weekly week pivot point=3315.11, R1=3396.27, R2=3522.59; S1=3188.79, S2=3107.63; S1/S2/S3 pivot levels were breached A down week; second in the last five weeks and sixth in last ten weeks Below 10-week EMA; above 39-week SMA, and 89-week SMA Uptrend since March 23 Under Pressure
Daily	A relatively small green spinning top candle that opened higher; downtrend since October 12 in small steps; next support at 3209.45, the low September 24 %K turning up above %D; RSI-9 turning up; just below 40; below 8-day SMA Below 20-day EMA, 50-day EMA; at/below 100-day; above 200-day SMA Uptrend Under Pressure
2-Hour (E-mini futures)	Bounced off a support zone between 3198.00 and 3235.255 at 2:00 AM on October 30; breaking above a Head-&-Shoulder pattern – 50% extension target is near 3390.00, 61.8% extension target is near 3400.00 and 100% extension target is near 3440.00 RSI-21 rising in steps since October 28 afternoon; above 60; made Bullish Divergence October 29 and October 30 Above EMA10 of EMA50, which is above EMA20 Bias: Down-Side
30-Minute (E-mini futures)	Trending down since 2:00 PM on October 12; bouncing off lows since 2:30 PM on October 30; breaking above a resistance level around 3333.00 RSI-21 between 60 and 65 %K is below %D since 5:00 AM from near 100 Above EMA20; which is above EMA10 of EMA50 Bias: Side-Up
15-Minute (E-mini futures)	Bollinger Band (20, 2.0) moving up since 3:30 PM on October 30 The Bollinger Band narrowed from 10:00 PM to 3:00 AM; expanding since; price walked up the upper bound till 5:30 AM and then drifted to the middle band Stochastic (9, 1, 3): %K is crisscrossing %D lower Bias: Side-Up

Previous Session

Major U.S. indices closed higher on Monday, November 2 in lower volume. Indices opened higher and then traded up and down during the day before closing with an up move. All S&P sectors closed higher.

From Briefing.com:

The S&P 500 advanced 1.2% on Monday in a cyclically-led rebound. The value-oriented Dow Jones Industrial Average (+1.6%) and Russell 2000 (+2.0%) outpaced the benchmark index, while the Nasdaq Composite (+0.4%) underperformed amid relative weakness in the mega-cap/growth stocks. […] The energy sector rose 3.7% amid a turnaround in crude futures ($36.79, +1.09, +3.1%), which were down 5% from Friday’s settlement price after several European countries announced renewed lockdowns. The materials (+3.4%), industrials (+2.7%), and financials (+1.9%) sectors were other notable gainers. At the other end, the information technology (+0.3%), consumer discretionary (+0.3%), and communication services (+0.1%) sectors struggled to keep pace due to renewed selling pressure in their mega-cap components, which were also among the weakest performers last week. […] U.S. Treasuries finished mixed and little changed. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield declined one basis point to 0.85%. The U.S. Dollar Index finished little changed at 94.06. […] The ISM Manufacturing Index for October checked in at 59.3% (Briefing.com consensus 55.7%), which is an improvement from 55.4% in September and the highest level since September 2018. The dividing line between expansion and contraction is 50.0%. […] Total construction spending increased 0.3% m/m in September (Briefing.com consensus +0.9%) on the heels of a downwardly revised 0.8% increase (from +1.4%) in August. Total private construction spending rose 0.9% m/m and total public construction spending declined 1.7%. […] Nasdaq Composite +22.1% YTD S&P 500 +2.5% YTD Dow Jones Industrial Average -5.7% YTD Russell 2000 -6.0% YTD