Directional Bias For The Day:

• S&P Futures are higher at 8:30 AM; moving up since 2:45 PM on Wednesday
• The odds are for an up day with a good chance of sideways to down move from pre-open levels around 4658.00 – watch for a break above 4661.25 and a break below 4644.50 for clarity
• No key economic data report due during the day:
  • The bond market is closed

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4653.04, 4640.49, and 4630.86
• Critical resistance levels for S&P 500 are 4663.24, 4686.51, and 4691.32
• Key levels for E-mini futures: break above 4661.25, the high of 5:00 AM and break below 4644.50, the low of 3:30 AM

Pre-Open

• On Wednesday at 4:00 PM, S&P futures (December 2021) closed at 4641.25 and the index closed at 4646.71 – a spread of about -5.50 points; futures closed at 4642.00 for the day; the fair value is -0.75
• Pre-NYSE session open, futures are higher – at 8:30 AM, S&P 500 futures were up by +16.50; Dow by +15; and NASDAQ by +129.75

Markets Around The World

• Markets in the East closed mixed – Shanghai, Hong Kong, Tokyo, and Singapore closed higher; Sydney, Mumbai, and Seoul closed lower
• European markets are mostly higher – Spain is down;
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • Precious metals are higher
  • Industrial metals are mostly higher
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 1.560%, up +3.1 basis points from two weeks ago;
  • 30-years is at 1.916%, down -2.6 basis points;
  • 2-years yield is at 0.515%, up +1.1 basis points;
  • The 10-Year-&-2-Year spread is at 1.045, down from 1.025
  • The 30-Year-&-10-Year spread is at 0.356, down from 0.413
• VIX
  • At 17.75 @ 8:30 AM; down from the last close; above 5-day SMA;
  • Recent high = 24.89 on October 1; low =  14.73 on November 4
  • Sentiment: Risk-On

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

Previous Session

Major U.S. indices closed lower on Wednesday, November 10, in mostly higher volume. Dow Jones Transportation Average traded in lower volume. Major indices opened lower then bounced up a bit before declining. They recouped some losses near the close.

From Briefing.com:

The S&P 500 fell 0.8% on Wednesday, as the market cooled off amid hot CPI data for October and a corresponding pop in Treasury yields. The Nasdaq Composite (-1.7%) and Russell 2000 (-1.6%) declined more than 1.5%, while the Dow Jones Industrial Average fell 0.7%. The information technology (-1.7%), communication services (-1.3%), and energy (-3.0%) sectors were the weakest sectors in the S&P 500 with losses between 1-3%. The defensive-oriented utilities (+0.7%), health care (+0.3%), and consumer staples (+0.3%) sectors were the only sectors that closed higher. Specifying the data, the Consumer Price Index report showed total CPI was up 0.9% m/m (Briefing.com consensus +0.6%) and up 6.2% yr/yr — the largest 12-month increase since November 1990. Core CPI, which excludes food and energy, rose 0.6% m/m (Briefing.com consensus +0.4%) and was up 4.6% yr/yr. […] The 2-yr yield settled higher by ten basis points to 0.50%, and the 10-yr yield settled higher by 13 points to 1.56%. WTI crude futures fell 3.5%, or $2.93, to $81.23/bbl amid bearish inventory data. […] Total jobless claims for the week ending November 6 decreased by 4,000 to 267,000 (Briefing.com consensus 265,000), which is the lowest since March 14, 2020. Continuing claims for the week ending October 30 increased by 59,000 to 2.160 million. […] S&P 500 +23.7% YTD Nasdaq Composite +21.2% YTD Russell 2000 +21.0% YTD Dow Jones Industrial Average +17.9% YTD Overseas:  Europe: DAX +0.2%, FTSE +0.9%, CAC flat Asia: Nikkei -0.6%, Hang Seng +0.7%, Shanghai -0.4% Commodities:  Crude Oil -2.98 @ 81.17 Nat Gas -0.07 @ 4.99 Gold +18.90 @ 1849.50 Silver +0.41 @ 24.72 Copper -0.06 @ 4.31