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 4180.75
• Key economic data report due during the day:
  • ADP Non-Farm Employment Change (978K vs. 645K est.; prev. 654K) at 8:15 AM
  • Unemployment Claims ( 400K est.; prev. 406K ) at 8:30 AM
  • Revised Nonfarm Productivity ( 5.5% est.; prev. 5.4%) at 8:30 AM
  • Revised Unit Labor Cost ( -0.4% est.; prev. -0.3%) at 8:30 AM
  • Final Services PMI ( 70.1 est.; prev. 70.1) at 9:45 AM
  • ISM Services PMI ( 63.0 est.; prev. 62.7) at 10:00 AM

Directional Bias Before Open:

Weekly: Uptrend Daily: Uptrend Under Pressure

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

Key Levels:

• Critical support levels for S&P 500 are 4170.16, 4154.03, and 4148.62
• Critical resistance levels for S&P 500 are 4182.52, 4191.10, and 4197.59
• Key levels for E-mini futures: break above 4180.75, the high of 7:30 AM  and break below 4157.25, the low of 10:00 PM on May 23

Pre-Open

• On Wednesday at 4:00 PM, S&P futures (June 2021) closed at 4206.25 and the index closed at 4208.12 – a spread of about -2.00 points; futures closed at 4206.25 for the day; the fair value is +0.0
• Pre-NYSE session open, futures are lower – at 8:00 AM, S&P 500 futures were down by -32.00; Dow by -215, and NASDAQ by -142.00

Markets Around The World

• Markets in the East closed mostly higher – Shanghai and Hong Kong were down;
• 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 mostly lower
  • Most soft commodities are mostly higher
• Treasuries (from two weeks ago)
  • 10-years yield closed at 1.591%, down -9.2 basis points from two weeks ago;
  • 30-years is at 2.280%, down -10.7 basis points;
  • 2-years yield is at 0.137%, down -2.4 basis points;
  • The 10-Year-&-2-Year spread is at 1.454, down from 1.522
• VIX
  • At 18.28 @ 6:45 AM; higher from the last close; above 5-day SMA;
  • Recent high =  25.96 on May 19; low =  15.90 on May 28
  • Sentiment: Risk-Off

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

Monthly	Confirmed Uptrend May 2021 was a Doji with a small upper shadow and a long lower shadow; at all-time closing and intra-month highs; Stochastic %K above %D near 100; RSI-9 near 80; 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
Weekly:	The week ending on May 28 was a green candle with almost no lower shadow and small upper shadow; Stochastic (9,1, 3): %K is crossing above %D; RSI (9) is just below 70 The week was up +48.25 or +1.2%; the 5-week ATR is 104.54 An up week; third in the last five weeks, and seventh in the last ten weeks The weekly week pivot point=4197.54, R1=4224.93, R2=4245.74; S1=4176.73, S2=4149.34; R1 pivot level was breached Above 10-week EMA, 39-week SMA, and 89-week SMA Uptrend since March 23, 2020
Daily	A small green candle with small upper and lower shadows; %K is below %D RSI-9 is just above 60; above 8-day EMA Above 20-day EMA, 50-day EMA, 100-day, and 200-day SMA Uptrend Under Pressure – moving sideways
2-Hour (E-mini futures)	Breaking below a sideways move since 12:00 PM on May 24 RSI-21 declined to near 20 Below EMA20, which is at EMA10 of EMA50 Bias: Up-Side
30-Minute (E-mini futures)	Broke below a symmetrical triangle at 6:30 AM; the 61.8% extension target near 4168.00 is almost achieved; the 100% extension target is near 4152.00 RSI-21 is below 30 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 2:15 AM The Bollinger Band is expanding since 2:15 AM with price walking down the lower band Stochastic (9, 1, 3): %K is crisscrossing %D below 20 Bias: Side-Down

Previous Session

Major U.S. indices closed mostly higher on Wednesday, June 2 in mostly lower volume. Dow Jones Transportation Average traded down in higher volume. The day’s range was small and the indices moved little over the past few days.

From Briefing.com:

The stock market finished a quiet midweek session on a slightly higher note with the S&P 500 (+0.1%) and Nasdaq (+0.1%) settling right above their flat lines. […] Six sectors ended the day in positive territory. The energy sector (+1.7%) continued its torrid start to the week and was followed by the lightly-weighted real estate sector (+1.4%) while top-weighted technology (+0.6%) held a modest gain throughout the day, keeping the S&P 500 in the green. […] The materials sector (-0.9%) was today’s weakest performer while the remaining laggards finished with much slimmer losses. […] Treasuries climbed with the 10-yr yield slipping two basis points to 1.59%. […] Russell 2000 +16.4% YTD Dow Jones Industrial Average +13.1% YTD S&P 500 +12.0% YTD Nasdaq Composite +6.7% YTD Overseas:  Europe: DAX +0.2%, FTSE +0.4%, CAC +0.5% Asia: Nikkei +0.5%, Hang Seng -0.8%, Shanghai -0.8% Commodities:  Crude Oil +0.91 @ 68.82 Nat Gas -0.04 @ 3.07 Gold +5.10 @ 1909.90 Silver +0.14 @ 28.25 Copper -0.05 @ 4.59