Directional Bias For The Day:

• S&P Futures are higher;
• The odds are for an up day with a good chance to sideways to up move from pre-open levels around 3615.00 – watch for the break above 3623.25 and the break below 3585.75 for clarity
• Key economic data report:
  • Building Permits ( 1.55M vs. 1.57M est.; prev. 1.55M) at 8:30 AM
  • Housing Starts ( 1.53M vs. 1.45M est.; prev. 1.42M ) at 8:30 AM

Directional Bias Before Open:

Weekly: Uptrend Resumed Daily: Uptrend Resumed

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

Key Levels:

• Critical support levels for S&P 500 are 3603.40, 3588.68, and 3569.52
• Critical resistance levels for S&P 500 are 3628.51, 3645.99, and 3665.24
• Key levels for E-mini futures: break above 3623.25, the high of 7:30 AM and break below 3585.75, the low of 1:30 AM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (December 2020) closed at 3607.50 and the index closed at 3609.53 – a spread of about -2.00 points; futures closed at 3606.75 for the day; the fair value is +1.25
• Pre-NYSE session open, futures are higher – at 8:15 AM, S&P 500 futures were up by +8.75; Dow by +120, and NASDAQ by +19.50

Markets Around The World

• Markets in the East closed mostly higher – Tokyo closed down
• European markets are mostly higher – Switzerland is lower
• Currencies:
  

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

• Commodities:
  • Energy is higher
  • Precious metals are down
  • Industrial metals are mostly up – copper is down
  • Most soft commodities are up
• Treasuries
  • 10-years yield closed at 0.872, down the last close of 0.906%;
  • 30-years is at 1.626% down from 1.660%
  • 2-years yield is at 0.185% up from 0.189%
  • The 10-Year-&-2-Year spread is at 0.687 down from 0.717
• VIX
  • At 22.13 @ 6:30 AM; down -0.58 from the last close; below 5-day SMA;
  • Recent high =  41.16 on October 16; low =  22.41 on November 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 November 13 was a Doji candle with almost equal-sized upper and lower shadows; at the upper bound of a Broadening pattern; made all-time closing and intraday high for the week Stochastic (9,1, 3): %K is above %D; above 80 RSI (9) is near 65 The week was up +75.71 or +2.2%; the 5-week ATR is 164.63 An up week; third in the last five weeks and fifth in the last ten weeks The weekly week pivot point=3581.02, R1=3659.12, R2=3715.10; S1=3516.04, S2=3446.94; R1 pivot level was breached Above 10-week EMA, 39-week SMA, and 89-week SMA Uptrend since March 23 Resumed
Daily	A relatively small red candle with almost no upper shadow and small lower shadow; continues the move above a recently broken symmetrical triangle – 50% extension target is near 3710.00; 61.8% extension target is near 3750.00; 100% extension target is near 3900.00 %K is above %D above 80; potential Bearish Divergence RSI-9 turning up above 65 Above 20-day EMA, 50-day EMA, 100-day, and 200-day SMA Uptrend Resumed
2-Hour (E-mini futures)	Sideways to down since 12:00 AM on Sunday; Broke above a Horizontal Channel, between 3576.00 and 3513.00, at 2:00 PM on Friday; reached a high of 3637.00, near 100% extension target around 3639.00; 161.8% extension target is near 3678.00 RSI-21 bounced up to near 60 after making Double Bottom around 35 Above EMA20, which is above EMA10 of EMA50 Bias: Up-Side
30-Minute (E-mini futures)	Breaking above a shallow up-sloping flag – 50% extension target is near 3648.00, 61.8% extension target is near 3662.00, and 100% extension target is near 3710.00 Moving mostly sideways since 6:30 PM near the November 9 high; RSI-21 is just below 60 %K is below %D since 7:30 AM Above EMA20; which is above EMA10 of EMA50 Bias: Up-Side
15-Minute (E-mini futures)	Bollinger Band (20, 2.0) is moving mostly sideways since 10:45 PM on Sunday The Bollinger Band is expanding since 1:30 AM; price declining from near the upper band to the mid-band Stochastic (9, 1, 3): %K is below %D Bias: Up-Side

Previous Session

Major U.S. indices closed mixed on Tuesday, November 17 in lower volume. Dow Jones Transportation Average and Russell 2000 closed higher. They also made all-time intraday and closing highs. For the past five days, the major indices have been moving mostly sideways to higher. All but three – Energy, Real Estate, and Telecom – S&P sectors closed lower.

From Briefing.com:

The S&P 500 declined 0.5% on Tuesday in a cool-down session following its recent record-setting run. The Nasdaq Composite (-0.2%) and Dow Jones Industrial Average (-0.6%) also closed modestly lower, while the Russell 2000 (+0.4%) closed at a fresh record high. […] For the most part, losses were kept in check. The S&P 500 utilities sector strayed from the pack with a 2.0% decline, but no other sector fell more than 0.8%. The energy (+0.5%) and real estate (+0.1%) sectors eked out gains. […] U.S. Treasuries ended the session with small gains, pushing yields lower. The 2-yr yield decreased two basis points to 0.16%, and the 10-yr yield decreased three basis points to 0.87%. The U.S. Dollar Index decreased 0.2% to 92.44. WTI crude futures increased 0.2% to $41.43/bbl. […] October Retail Sales were softer than expected with total retail sales up 0.3% m/m (Briefing.com consensus +0.5%) and sales, excluding autos, up 0.2% (Briefing.com consensus +0.6%). September retail sales growth was revised down to 1.6% from 1.9%. Excluding autos, it was revised to 1.2% from 1.5%. […] Industrial production increased 1.1% m/m in October (Briefing.com consensus +0.9%) on top of an upwardly revised 0.4% decline (from -0.6%) in September. The capacity utilization rate hit 72.8% (Briefing.com consensus 72.3%) following an upwardly revised 72.0% (from 71.5%) in September. […] The NAHB Housing Market Index increased to a new all-time high of 90 in November (Briefing.com consensus 85) following the previous all-time high of 85 in October. Business inventories increased 0.7% in September (Briefing.com consensus +0.5%) following an unrevised 0.3% increase in August. Import prices decreased 0.1% in October; and prices excluding oil increased 0.1%. Export prices increased 0.2% in October; and prices excluding agriculture were unchanged. […] Nasdaq Composite +32.6% YTD S&P 500 +11.7% YTD Russell 2000 +7.4% YTD Dow Jones Industrial Average +4.4% YTD