Directional Bias For The Day:

• S&P Futures are lower;
• The odds are for a sideways to down day; watch for the break above 3705.00 and the break below 3672.75 for clarity
• No key economic data report due during the day

Directional Bias Before Open:

Weekly: Uptrend Daily: Uptrend

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

Key Levels:

• Critical support levels for S&P 500 are 3686.88, 3670.94, and 3657.17
• Critical resistance levels for S&P 500 are 3698.86, 3708.57, and 3718.01
• Key levels for E-mini futures: break above 3693.00, the high of 2:30 AM and break below 3672.25, the low of 3:30 AM

Pre-Open

• On Friday at 4:00 PM, S&P futures (December 2020) closed at 3698.75 and the index closed at 3699.12 – a spread of about -0.50 points; futures closed at 3698.00 for the day; the fair value is +0.75
• Pre-NYSE session open, futures are mixed – at 9:15 AM, S&P 500 futures were down by -7.75; Dow down by -69, and NASDAQ up by +10.50

Markets Around The World

• Markets in the East closed mixed – Shanghai, Hong Kong, Tokyo, and Singapore closed down; Sydney, Mumbai, and Seoul closed up
• European markets are mostly lower – the U.K. and Switzerland are higher
• Currencies:
  

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

• Commodities:
  • Energy futures are lower
  • Precious metals are mixed
  • Industrial metals are lower
  • Most soft commodities are mostly lower
• Treasuries
  • 10-years yield is at 0.969%, down from the last close of 0.969%;
  • 30-years is at 1.703% down from 1.730%
  • 2-years yield is at 0.145% down from 0.149%
  • The 10-Year-&-2-Year spread is at 0.798 down from 0.820
• VIX
  • At 22.17 @ 8:30 AM; up +1.38 from the last close; above 5-day SMA;
  • Recent high =  27.27 on November 12; low =  19.51 on November 27
  • Sentiment: Risk-Off-to-Neutral

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

Monthly	Uptrend Resumed November 2020 was a large green candle with small upper and lower shadows; all-time closing and intraday highs Stochastic %K crossed above %D near 100; RSI-9 near 70; breaking above a downtrend line from January 2018 Crossing above the upper band of a 120-month regression channel; The sequence of higher highs and higher lows is resumed
Weekly:	The week ending on December 04 was a green candle with almost no upper shadow and small lower shadow; all-time closing high but not the intraday high; Stochastic (9,1, 3): %K is above %D; above 90 RSI (9) is near 70 The week was up +60.77 or +1.7%; the 5-week ATR is 135.33 An up week; fourth in the last five weeks and seventh in the last ten weeks The weekly week pivot point=3664.24, R1=3734.08, R2=3769.05; S1=3629.27, S2=3559.43; R1 pivot level was breached Above 10-week EMA, 39-week SMA, and 89-week SMA Uptrend since March 23
Daily	A green candle with almost no lower and upper shadows at the all-time highs; Broke above a symmetrical triangle on November 9; the 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 90 RSI-9 moving up above 70; above 8-day EMA Above 20-day EMA, 50-day EMA, 100-day, and 200-day SMA Confirmed Uptrend
2-Hour (E-mini futures)	Moving sideways-to-up above the upper band of an ascending triangle from November 9 high; 61.8% extension target is near 3764.00 and 100% extension target is near 3823.00 RSI-21 bouncing up above 55 after declining to 40 from above 75 At/above EMA20, which is above EMA10 of EMA50 Bias: Side-Up
30-Minute (E-mini futures)	Drifted down from the all-time high of 3705.00 to a support zone near 3675.00; bouncing up to 3690.00 RSI-21 declined to above 50 from near 70 %K is above %D; above 80 At/above EMA20; which is at/above EMA10 of EMA50 Bias: Side-Up
15-Minute (E-mini futures)	Bollinger Band (20, 2.0) is moving sideways-to-down since 11:00 PM The Bollinger Band is expanding since 2:45 AM with price first walking down the lower band and then bouncing up to the upper band Stochastic (9, 1, 3): %K is crossing below %D above 80 Bias: Side-Up

Previous Session

Major U.S. indices closed higher on Friday, December 4 in mostly lower volume. Russell 2000 traded in higher volume. Indices opened up and then traded higher closing near the highs for the day.

For the week, major US indices closed higher in higher volume. Most markets in Asia and Europe also closed up. The dollar index was down for the week. Energy futures were mixed but precious metal and industrial metals were up. Soft commodities mostly closed down. Treasury yields gained and only two S&P sectors – Consumer Discretionary and Utilities – were down for the week.

From Briefing.com:

Each of the major indices set intraday and closing highs on Friday, as the market remained convinced in the 2021 recovery narrative despite the mixed November employment report. The Russell 2000 rose 2.4%, pulling ahead of the S&P 500 (+0.9%), Dow Jones Industrial Average (+0.8%), and Nasdaq Composite (+0.7%). Sector gains were paced by the S&P 500 energy sector, which tacked on another 5.4% gain to its rebound effort. The materials (+2.0%), real estate (+1.3%), and industrials (+1.2%) sectors were next in line, while the utilities (-1.0%) and consumer discretionary (-0.1%) sectors closed lower. […] The 2-yr yield decreased one basis point to 0.14%, while the 10-yr yield increased five basis points to 0.97%. The U.S. Dollar Index increased 0.1% to 90.76. WTI crude futures rose 1.3%, or $0.59, to $46.25/bbl. […] November nonfarm payrolls increased by 245,000 (Briefing.com consensus 650,000). November unemployment rate was 6.7% (Briefing.com consensus 6.9%), versus 6.9% in October. November average hourly earnings increased 0.3% (Briefing.com consensus 0.1%) versus 0.1% in October. […] The U.S. trade deficit widened to $63.1 billion in October (Briefing.com consensus -$65.2 billion) from an upwardly revised $62.1 billion (from -$63.9 billion) in September. October exports were $4.0 billion more than September exports. October imports were $5.0 billion more than September imports. […] Factory orders for manufactured goods increased 1.0% m/m in October (Briefing.com consensus 0.8%) following an upwardly revised 1.3% increase (from 1.1%) in September. This is the sixth straight monthly increase in factory orders. […] Nasdaq Composite +38.9% YTD S&P 500 +14.5% YTD Russell 2000 +13.4% YTD Dow Jones Industrial Average +5.9% YTD