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 the pre-open level near 3810.00; watch for a break below 3788.50 for change of fortune
• Key economic data report due during the day:
  • NAHB Housing Market Index ( 86 est.,; prev. 86) at 10:00 AM

Directional Bias Before Open:

Weekly: Uptrend Daily: Uptrend

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

Key Levels:

• Critical support levels for S&P 500 are 3797.83, 3791.26, and 3780.37
• Critical resistance levels for S&P 500 are 3804.53, 3819.42, and 3823.60
• Key levels for E-mini futures: break above 3808.25, the high of 5:30 AM and break below 3788.50, the low of 11:30 PM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (March 2021) closed at 3790.25 and the index closed at 3798.91 – a spread of about -8.75 points; futures closed at 3790.50 for the day; the fair value is -0.50
• Pre-NYSE session open, futures are higher – at 8:30 AM, S&P 500 futures were up by +15.50; Dow by +43, and NASDAQ b0 +119.75

Markets Around The World

• Markets in the East mostly higher – Tokyo was down
• European markets are mostly higher – the UK and Spain are lower
• Currencies (from two weeks ago):
  

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

• Commodities (from two weeks ago):
  • Energy futures are lower
  • Precious metals are lower
  • Industrial metals are mostly higher
  • Most soft commodities are mixed
• Treasuries (from two weeks ago)
  • 10-years yield closed at 1.092%, up 13.7 BP from two weeks ago;
  • 30-years is at 1.840%, up 13.5 BP;
  • 2-years yield is at 0.141%, up 1.6 BP;
  • The 10-Year-&-2-Year spread is at 0.951, up from 0.830
• VIX
  • At 22.31 @ 6:45 AM; down from the last close; below 5-day SMA;
  • Recent high =  29.19 on January 4; low =  20.99 on December 29
  • Sentiment: Risk-On

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

Monthly	Confirmed Uptrend December 2020 was a green candle with a small gap and with almost no upper and lower shadows; all-time closing and intraday highs; Stochastic %K above %D near 100; RSI-9 above 70; broke above a downtrend line from January 2018 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 January 8 was a green candle with a relatively long lower shadow that opened higher; all-time intraday highs; Stochastic (9,1, 3): %K is above %D; near 100 RSI (9) is above 70 The week was up +68.61 or +1.8%; the 5-week ATR is 91.15 An up week; third in the last five weeks and seventh in the last ten weeks The weekly week pivot point=3771.36, R1=3880.01, R2=3935.34; S1=3716.03, S2=3607.38; R1/R2/3 and S1/S2/S3 pivot levels were breached Above 10-week EMA, 39-week SMA, and 89-week SMA Uptrend since March 23
Daily	A small green candle with almost no lower shadow and a small lower shadow; near all-time highs; not much up or down move since January 7; Broke above a symmetrical triangle at 3550.00 level on November 9; the 61.8% extension target near 3750.00 is achieved; 100% extension target is near 3900.00 %K  is above %D and near 100; RSI-9 is near 75; above 8-day EMA Above 20-day EMA, 50-day EMA, 100-day, and 200-day SMA Confirmed Uptrend
2-Hour (E-mini futures)	Drifting essentially sideways to down since 10:00 PM on January 7 within an un-even down-sloping flag; near the upper bound RSI-21 to around 65 Above EMA20, which is above EMA10 of EMA50 Bias: Up-Side
30-Minute (E-mini futures)	Moving mostly sideways since 10:30 AM on January 7; making a rounding pattern at the top  with price near the top; RSI-21 is moving between 50 and 60 %K is below %D Above EMA20, which is above EMA10 of EMA50 Bias: Side
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) is drifting up; The Bollinger Band is relatively stable Stochastic (9, 1, 3): %K is above %D Bias: Side-Up

Previous Session

Major U.S. indices closed higher on Tuesday, January 19 in lower volume. Indices continue to move sideways making small indecisive candles.

From Briefing.com:

The S&P 500 gained 0.8% on Tuesday, reclaiming its decline from last Friday, in an advance led by shares of mega-cap, semiconductor, and energy companies. The Nasdaq Composite (+1.5%) and Russell 2000 (+1.3%) outperformed the benchmark index, while the Dow Jones Industrial Average (+0.4%) posted a smaller gain. […] The S&P 500 energy sector (+2.1%) and Philadelphia Semiconductor Index (+3.4%), which contain economically-sensitive businesses, were among the biggest gainers today. The influential information technology sector advanced 1.3%. […] U.S. Treasuries recouped overnight losses and finished little changed in front of President-elect Biden’s inauguration tomorrow. The 2-yr yield was flat at 0.13%, and the 10-yr yield was flat at 1.09%. The U.S. Dollar Index decreased 0.3% to 90.50. WTI crude futures settled higher by 1.3%, or $0.66, to $52.96/bbl. […] Russell 2000 +8.9% YTD Nasdaq Composite +2.4% YTD S&P 500 +1.1% YTD Dow Jones Industrial Average +1.1% YTD