Directional Bias For The Day:

• S&P Futures are higher at 8:15 AM; futures rose during  the early European session and are retreating a bit since the 5:00 AM high of 4688.25
• The odds are for an up day with elevated volatility; watch for a break below 4653.25 for a change of sentiments
• Key economic data report due during the day:
  • Fed Chair Powell’s testimony to the Senate

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4673.02, 4632.93, and 4595.67
• Critical resistance levels for S&P 500 are 4695.72, 4718.65, and 4725.01
• Key levels for E-mini futures: break above 4688.25, the high of 5:15 AM and break below 4653.25, the low of 1:30 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (March 2022) closed at 4662.25 and the index closed at 4670.29 – a spread of about -8.00 points; futures closed at 4662.25 for the day; the fair value is +0.00
• Pre-NYSE session open, futures are higher – at 7:45 AM, S&P 500 futures were up by +13.75; Dow by +63; and NASDAQ by +63.50

Markets Around The World

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

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are lower
  • Industrial metals are lower
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 1.780%, up +29.9 basis points from two weeks ago;
  • 30-years is at 2.110%, up +22.4 basis points;
  • 2-years yield is at 0.899%, up +19.4 basis points;
  • The 10-Year-&-2-Year spread is at 0.881, up from 0.705
  • The 30-Year-&-10-Year spread is at 0.330, down from 0.405
• VIX
  • At 19.28 @ 6:45 AM; down from the last close; at/below 5-day SMA;
  • Recent high = 23.33 on January 10; low =  16.34 on January 4
  • Sentiment: Risk-On

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

Previous Session

Major U.S. indices closed mostly lower on Monday, January 10, in most higher volume. NASDAQ Composite closed higher. Dow Jones Transportation Average traded in lower volume. Indices gapped down at the open and then traded lower in the morning session before turning around and recouping most of the losses by the close. The day’s price action looked like a reversal day.

From Briefing.com:

The S&P 500 (-0.1%) declined for the fifth straight session on Monday, but it only lost 0.1% after being down 2.0% intraday. The Nasdaq Composite (+0.1%) eked out a gain after being down 2.7% intraday, while the Dow Jones Industrial Average (-0.5%) and Russell 2000 (-0.4%) also closed well off session lows. […] Investors started to buy the dip soon after it looked like the 10-yr yield peaked for the day, finding a good excuse to buy into an oversold condition. The Nasdaq, for instance, was down 8.2% in less than five sessions and had fallen below its 200-day moving average (14690). The S&P 500 couldn’t reclaim its 50-day moving average (4676), though, as eight of its 11 sectors still closed lower. The industrials (-1.2%) and materials (-1.0%) sectors declined at least 1.0%, while the health care sector advanced 1.0%. […] The U.S. Dollar Index increased 0.3% to 95.97. WTI crude futures declined 1.1%, or $0.83, to $78.11/bbl. Monday’s economic data was limited to Wholesale Inventories, which increased 1.4% m/m in November (Briefing.com consensus 1.2%) following a revised 2.5% increase (from 1.2%) in October. Looking ahead, investors will receive the NFIB Small Business Optimism Index for December on Tuesday. Dow Jones Industrial Average -0.7% YTD S&P 500 -2.0% YTD Russell 2000 -3.3% YTD Nasdaq Composite -4.5% YTD Overseas:  Europe: DAX -1.1%, FTSE -0.5%, CAC -1.4% Asia: Nikkei CLOSED, Hang Seng +1.1%, Shanghai +0.4% Commodities:  Crude Oil -0.83 @ 78.11 Nat Gas +0.35 @ 4.08 Gold +9.90 @ 1799.30 Silver +0.08 @ 22.48 Copper -0.06 @ 4.35 […]