Directional Bias For The Day:

• S&P Futures are higher
• The odds are for an up day with elevated volatility – watch for a break below 4169.50 for a change of sentiments
• Key economic data report due during the day:
  • ADP Non-Farm Employment Change ( 742K vs. 872K est.; prev. 565K) at 8:15 AM
  • Final Services PMI ( 63.1 est.; prev. 63.1) at 9:45 AM
  • ISM Service PMI ( 64.2 est.; prev. 63.7 ) at 10:00 AM

Directional Bias Before Open:

Weekly: Uptrend Daily: Uptrend Resumed

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

Key Levels:

• Critical support levels for S&P 500 are 4165.75, 4147.75, and 4128.59
• Critical resistance levels for S&P 500 are 4179.04, 4188.03, and 4203.92
• Key levels for E-mini futures: break above 4179.00, the high of 8:15 AM and break below 4169.50, the low of 7:15 AM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (June 2021) closed at 4160.75 and the index closed at 4164.66 – a spread of about -4.00 points; futures closed at 4158.25 for the day; the fair value is +2.25
• Pre-NYSE session open, futures are higher – at 8:30 AM, S&P 500 futures were up by +15.75; Dow by +73, and NASDAQ by +73.00

Markets Around The World

• Markets in the East closed mixed – Hong Kong and Singapore closed down Sydney and Mumbai closed up; Shanghai, Tokyo, and Seoul were closed for trading
• European markets are higher
• Currencies (from two weeks ago):
  

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

• Commodities (from two weeks ago):
  • Energy futures are higher
  • Precious metals are mixed
  • Industrial metals are higher
  • Most soft commodities are mostly higher
• Treasuries (from two weeks ago)
  • 10-years yield closed at 1.609%, up +4.7 basis points from two weeks ago;
  • 30-years is at 2.281%, up +2.2 basis points;
  • 2-years yield is at 0.165%, up +1.6 basis points;
  • The 10-Year-&-2-Year spread is at 1.444, up from 1.413
• VIX
  • At 18.65 @ 7:45 AM; down from the last close; above 5-day SMA;
  • Recent high =  19.90 on April 22; low =  16.67 on April 28
  • Sentiment: Risk-On

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

Monthly	Confirmed Uptrend March 2021 was a green candle with a small upper shadow and a lower shadow almost equal to the real body; at all-time closing and intra-month highs; Stochastic %K above %D near 100; RSI-9 near 75; 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 April 30 was a small Gravestone Doji at all-time highs; Stochastic (9,1, 3): %K is below %D; RSI (9) is above 75 The week was up +1.00 or +0.0%; the 5-week ATR is 76.64 An up week; fourth in the last five weeks, and seventh in the last ten weeks The weekly week pivot point=4191.60, R1=4208.35, R2=4235.53; S1=4164.42, S2=4147.67; R1 pivot level was breached Above 10-week EMA, 39-week SMA, and 89-week SMA Uptrend since March 23, 2020
Daily	A small Hammer candlestick formation after a short decline Broke above a symmetrical triangle at 3550.00 level on November 9; the 161.8% extension target near 4140.00 levels is achieved %K is below %D near 60 RSI-9 is below 65; below 8-day EMA Above 20-day EMA, 50-day EMA, 100-day, and 200-day SMA Uptrend
2-Hour (E-mini futures)	Drifting sideways since 10:00 AM on April 15; Uptrend since 10:00 AM on March 25; bouncing up since 10:00 AM on Tuesday Breaking below a symmetrical triangle; achieved 100% extension target near 4121.00 Broke above a down-sloping flag on March 26; the 100% extension target near 4100.00 is achieved; the 161.8% extension target is near 4260.00 RSI-21 is moving up from below 20 to above 50 Above EMA10 of EMA50 but below EMA20 Bias: Side-Down
30-Minute (E-mini futures)	Drifting sideways to down since 9:30 AM on April 29; sequence of lower lows and lower highs; bouncing up since 11:30 AM on Tuesday RSI-21 is near 60 from just above 20 Above EMA20, which is above EMA10 of EMA50 Bias: Side-Down
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) is moving sideways to up since 7:00 PM The Bollinger Band is contracting since 2:00 AM Stochastic (9, 1, 3): %K is below %D since 7:00 AM Bias: Side-Up

Previous Session

Major U.S. indices closed mixed on Tuesday, May 4 in higher volume.  NASDAQ Composite closed lower. Indices opened lower and then declined more and bottomed in the late morning. Then they turned around and clawed back more than half of morning’s loss.

From Briefing.com:

The S&P 500 declined 0.7% on Tuesday, pressured by weakness in the mega-cap/growth/technology stocks, which disproportionately affected the Nasdaq Composite (-1.9%). The Russell 20000 declined 1.3%, while the Dow Jones Industrial closed higher by 0.1% amid a relatively upbeat finish. From the get-go, the heavily-weighted growth stocks within the S&P 500 information technology (-1.9%), consumer discretionary (-1.2%), and communication services (-0.9%) sectors struggled, extending their underperformance from the prior day […] Money appeared to rotate into the large-cap cyclical stocks within the materials (+1.0%), financials (+0.7%), industrials (+0.4%), and energy (+0.02%) sectors. […] The 10-yr yield, which is the benchmark for inflation/growth expectations, decreased two basis points to 1.59%. The 2-yr yield increased one basis point to 0.16%. The U.S. Dollar Index increased 0.4% to 91.27. WTI crude futures rose 1.9%, or $1.21, to $65.70/bbl. […] The U.S. trade deficit widened to $74.4 billion in March (Briefing.com consensus -$74.7 billion) from an upwardly revised $70.5 billion (from -$71.1 billion) in February, with exports increasing by $12.4 billion to $200.0 billion and imports increasing by $16.4 billion to $274.5 billion. […] Factory orders for manufactured goods increased 1.1% m/m in March (Briefing.com consensus 0.7%) after decreasing an upwardly revised 0.5% (from -0.7%) in February. Shipments of manufactured goods were up 2.1% after declining 1.9% in February. […] Russell 2000 +13.8% YTD Dow Jones Industrial Average +11.5% YTD S&P 500 +10.9% YTD Nasdaq Composite +5.8% YTD Overseas:  Europe: DAX -2.4%, FTSE -0.6%, CAC -0.9%% Asia: Nikkei closed for holiday, Hang Seng +0.9%, Shanghai closed for holiday Commodities:  Crude Oil +1.23 @ 65.72 Nat Gas +0.01 @ 2.97 Gold -15.20 @ 1776.70 Silver -0.41 @ 26.55 Copper unch @ 4.53