Directional Bias For The Day:

• S&P Futures are lower;
• The odds are for a down day; watch for the break above 3669.25 for change of fortunes
• Key economic data report due during the day:
  • CPI ( 0.2% vs. 0.1% est.; prev. 0.0%) at 8:30 AM
  • Core CPI ( 0.2% vs. 0.1% est.; prev. 0.0%) at 8:30 AM
  • Unemployment Claims ( 853K vs. 723K est.; prev. 716K) at 8:30 AM
  • ECB Press Conference at 8:30 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3644.84, 3624.73, and 3598.59
• Critical resistance levels for S&P 500 are 3660.54, 3680.90, and 3698.11
• Key levels for E-mini futures: break above 3669.25, the high of 8:00 AM and break below 3642.25, the low of 9:30 AM on December 2

Pre-Open

• On Wednesday at 4:00 PM, S&P futures (December 2020) closed at 3668.75 and the index closed at 3672.82 – a spread of about -2.00 points; futures closed at 3672.50 for the day; the fair value is -4.25
• Pre-NYSE session open, futures are lower – at 9:00 AM, S&P 500 futures were down by -19.50; Dow by -116, and NASDAQ by -112.00

Markets Around The World

• Markets in the East closed mostly lower – Shanghai closed up;
• European markets are mixed – Germany, Spain, and Stoxx 600 are down; the UK, France, Italy, and Switzerland are higher
• Currencies:
  

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

• Commodities:
  • Energy futures are higher
  • Precious metals are higher
  • Industrial metals are higher
  • Most soft commodities mostly higher
• Treasuries
  • 10-years yield closed at 0.941%, up from the last close of 0.913%;
  • 30-years is at 1.689% up from 1.659%;
  • 2-years yield is at 0.149% down from 0.157%;
  • The 10-Year-&-2-Year spread is at 0.792 down from 0.756
• VIX
  • At 22.27 @ 8:15 AM; unchanged from the last close; above 5-day SMA;
  • Recent high =  27.27 on November 12; low =  19.51 on November 27
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed mostly lower on Wednesday, December 9 in higher volume. Dow Jones Transportation Average closed higher. Most major indices made Bearish Engulfing or similar bearish candlestick formations. Transport made Doji. All but three S&P sectors – Energy, Materials, and Industrials – closed lower.

From Briefing.com:

Each of the major indices began Wednesday’s session at record highs, but a decline led by the Nasdaq Composite (-1.9%) unfolded throughout the day amid profit-taking pressure. The S&P 500 declined 0.8%, the Dow Jones Industrial Average declined 0.4%, and the Russell 2000 declined 0.8%. […] growth stocks and in the S&P 500 information technology sector (-1.9%). The communication services (-1.2%) and real estate (-1.0%) sectors also underperformed. Notably, the cyclical energy (+0.3%), industrials (+0.2%), and materials (+0.1%) sectors closed higher, emblematic of lingering recovery optimism. […] Longer-dated Treasuries declined alongside the major indices, pushing yields higher. The 2-yr yield was flat at 0.15%, and the 10-yr yield increased three basis points to 0.94%. The U.S. Dollar Index increased 0.1% to 91.03. WTI crude futures decreased 0.3%, or $0.14, to $45.50/bbl. […] Job openings increased to 6.652 million in October from 6.436 million in September. Wholesale inventories increased 1.8% in October (Briefing.com consensus 0.9%) following an unrevised 0.4% increase in September. […] Nasdaq Composite +37.5% YTD Russell 2000 +14.0% YTD S&P 500 +13.7% YTD Dow Jones Industrial Average +5.4% YTD