Directional Bias For The Day:

• S&P Futures are lower
• The odds are for a down day with elevated volatility – watch for a break above 4161.25
• Key economic data report due during the day:
  • JOLTS Jobs Openings ( 7.50 M est.; prev. 7.37M) at 10:00 AM

Directional Bias Before Open:

Weekly: Uptrend Daily: Uptrend Resumed

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

Key Levels:

• Critical support levels for S&P 500 are 4147.33; 4128.59, and 4123.69
• Critical resistance levels for S&P 500 are 4167.75, 4188.13, and 4207.94
• Key levels for E-mini futures: break above 4161.25, the high of 5:00 PM on Sunday and break below 4120.50, the low of 11:30 AM on May 4

Pre-Open

• On Monday at 4:00 PM, S&P futures (June 2021) closed at 4183.75 and the index closed at 4188.43 – a spread of about -4.75 points; futures closed at 4183.50 for the day; the fair value is +0.25
• Pre-NYSE session open, futures are lower – at 8:00 AM, S&P 500 futures were down by -39.50; Dow by -176, and NASDAQ by -224.25

Markets Around The World

• Markets in the East closed mostly lower – Shanghai was up
• European markets are lower
• Currencies (from two weeks ago):
  

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

• Commodities (from two weeks ago):
  • Energy futures are higher
  • Precious metals are higher
  • Industrial metals are higher
  • Most soft commodities are mostly higher
• Treasuries (from two weeks ago)
  • 10-years yield closed at 1.602%, up +3.2 basis points from two weeks ago;
  • 30-years is at 2.319%, up +7.5 basis points;
  • 2-years yield is at 0.157%, down -1.3 basis points;
  • The 10-Year-&-2-Year spread is at 1.445, up from 1.400
• VIX
  • At 21.78 @ 6:45 AM; higher from the last close; above 5-day SMA;
  • Recent high =  21.85 on May 4; low =  15.38 on April 14
  • Sentiment: Risk-Off

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 May 7 was a green candle with a small upper shadow and a lower shadow equal to one and half the size of the real body Stochastic (9,1, 3): %K has crossed above %D; RSI (9) is above 75 The week was up +51.43 or +1.2%; the 5-week ATR is 83.05 An up week; fourth in the last five weeks, and eight in the last ten weeks The weekly week pivot point=4199.74, R1=4270.90, R2=4309.19; S1=4161.45, S2=4090.29; R1/R2/S1/S2 pivot levels were breached Above 10-week EMA, 39-week SMA, and 89-week SMA Uptrend since March 23, 2020
Daily	A relatively large Bearish Engulfing candle at all-time highs with almost no lower shadow and small upper shadow; %K crossed below %D from above 90 to near 50 RSI-9 has turned down; just above 50; below 8-day EMA Above 20-day EMA, 50-day EMA, 100-day, and 200-day SMA Uptrend
2-Hour (E-mini futures)	Moving down since 8:00 PM on May 4; a move below 4140.50 will break the sequence of higher highs and higher lows since May 4; Uptrend since 10:00 AM on March 25; 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 turning up from just above 50 at 3:30 AM Below EMA20, which is below EMA10 of EMA50 Bias: Side-Down
30-Minute (E-mini futures)	Trending down since 8:00 PM on May 9 from the all-time high of 4238.25 to 4144.75; An ABCD pattern on May 6; 161.8% extension target near 4235.00 was achieved; RSI-21 is moving around 35; up from below 25 and after a couple of Bullish Divergences Below EMA20, which is below EMA10 of EMA50 Bias: Side-Down
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) is moving down since 4:00 PM on Monday; sideways to down move since 1:45 AM The Bollinger Band is relatively small and stable Stochastic (9, 1, 3): %K is crisscrossing %D around 30 Bias: Down-Side

Previous Session

Major U.S. indices closed lower on Monday, May 10 in mostly higher volume. Dow Jones Transportation Average traded in lower volume. Indices opened at the high and then traded sideways till early afternoon and then mostly declined later in the day. Most made Bearish Engulfing or similar bearish candlesticks.

From Briefing.com:

The S&P 500 fell 1.0% on Monday, as negative momentum accelerated in the heavily-weighted growth stocks with selling interest leaking into the broader market late in the day. The Nasdaq Composite (-2.6%) and Russell 2000 (-2.6%) both dropped 2.6%. The Dow Jones Industrial Average was up as much as 0.9% intraday at all-time highs above the 35,000 level, but it retraced from that level and closed lower by 0.1%. […] From a sector perspective, the S&P 500 information technology (-2.5%), communication services (-1.9%), and consumer discretionary (-2.0%) sectors took the brunt of the damage amid weakness in the mega-caps and semiconductor stocks. The Philadelphia Semiconductor Index dropped 4.7%. […] The defensive-oriented utilities (+1.0%), consumer staples (+0.8%), real estate (+0.4%), and health care (+0.1%) sectors finished as leaders in positive territory alongside the industrials sector (+0.1%). […] The 2-yr yield increased one basis point to 0.15%. The U.S. Dollar Index was little changed at 90.22. […] Dow Jones Industrial Average +13.5% YTD Russell 2000 +12.0% YTD S&P 500 +11.5% YTD Nasdaq Composite +4.0% YTD Overseas:  Europe: DAX flat, FTSE -0.1%, CAC flat Asia: Nikkei +0.6%, Hang Seng -0.1%, Shanghai +0.3% Commodities:  Crude Oil +0.03 @ 64.80 Nat Gas -0.03 @ 2.93 Gold +5.40 @ 1837.00 Silver -0.01 @ 27.47 Copper -0.02 @ 4.72