Directional Bias For The Day:

• S&P Futures are lower at 8:45 AM; drifting sideways to down since 10:30 PM
• The odds are for an up day with elevated volatility; watch for a break below 4395.50 for a change of sentiments
• No key economic data report due during the day:

Directional Bias Before Open:

Weekly: Correction Daily: Correction 120-Min: Down-Side

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

Key Levels:

• Critical support levels for S&P 500 are 4387.69, 4374.25, 4332.40
• Critical resistance levels for S&P 500 are 4453.23, 4494.52, and 4530.20
• Key levels for E-mini futures: break above 4435.00, the high of 4:30 AM and break below 4395.50, the low of 7:00 AM

Pre-Open

• On Friday at 4:00 PM, S&P futures (March 2022) closed at 4424.00 and the index closed at 4431.85 – a spread of about -7.75 points; futures closed at 4423.25 for the day; the fair value is +0.75
• Pre-NYSE session open, futures are mixed – at 9:00 AM, S&P 500 futures were down by -9.50; Dow down by -129; and NASDAQ up by +41.50

Markets Around The World

• Markets in the East closed mostly higher – Sydney was down; Shanghai and Seoul were closed
• European markets are mixed – Germany, Itlay, Switzerland, and STOXX 600 are up; the UK, France, and Spain are down
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are lower
  • Industrial metals are mostly higher
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 1.782%, up +1.0 basis points from two weeks ago;
  • 30-years is at 2.083%, down -3.1 basis points;
  • 2-years yield is at 1.165%, up +20.4 basis points;
  • The 10-Year-&-2-Year spread is at 0.617, down from 0.811
  • The 30-Year-&-10-Year spread is at 0.301, down from 0.342
• VIX
  • At 28.55 @ 8:30 AM; up from the last close; below the 5-day SMA;
  • Recent high = 38.9 on January 24; low =  17.36 on January 12
  • Sentiment: Risk-On-Neutral

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

Monthly	December 2021 was a green candle that opened above the previous week’s real-body and closed higher with a small upper shadow and a slightly longer lower shadow; at all-time highs Stochastic (9, 1, 3): %K crossed above %D; above 90; RSI-9 is turning up from above 75; Above the upper band of a 120-month regression channel; Confirmed Uptrend: sequence of higher highs and higher lows
Weekly:	The week ending on January 28 was a green candle that looked like a hammer with a small upper shadow; Stochastic (9,1, 3): %K is crossing above %D from near zero RSI-9 has turned up; just below 40 The week was up +33.91 or +0.8%; the 5-week ATR  is 180.75 An up week; second in the last five weeks, and fourth in the previous ten weeks The weekly pivot point=4369.23, R1=4515.85, R2=4599.84; S1=4285.24, S2=4138.62; S1/S2 pivot levels were breached Below 10-week EMA and 39-week SMA; above 89-week SMA In Correction
Daily	A large green candle with almost no upper shadow; Stochastic (9, 1, 3): %K crossed above %D; above 50 RSI-9 has turned up; just below 40; above 8-day EMA; Below 20-day EMA, 50-day EMA, 100-day SMA; at 200-day SMA In Correction
2-Hour (E-mini futures)	Moving within a congestion area since January 24; downtrend since January 4; broke below a horizontal channel – the 100% extension target near 4245.00 is achieved; the 161.8% extension target is near 4090.00 RSI-21 is rising in a zig-zag manner since 4:00 AM on January 24; just below 60 At/below EMA10 of EMA50, above EMA20 Bias: Down-Side
30-Minute (E-mini futures)	Broke above a downtrend line from January 4 high; moving near the upper bound of a Horizational Channel between 4440.00 and 4260.00 since 8:00 PM on January 23; a break above will lead to the 61.8% extension target near 4551.24 and the 100% extension target near 4620.00 RSI-21 has declined from above 50 at 12:3-0 AM to just above 50 At/below EMA20, which is above EMA10 of EMA50 Bias: Side-Up
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) is moving sideways to down since 11:00 PM The Bollinger Band is contracting slightly since 9:00 AM Stochastic (9, 1, 3): %K is crisscrossing %D higher Bias: Up-Side

Previous Session

Major U.S. indices closed higher on Friday, January 28, in higher volume. The major indices declined at the open and then started to move higher. They moved sideways around Noon and then again moved up closing near the highs for the day.

For the week, major US indices closed mostly higher in higher volume. Russell 2000 and Dow Jones Transportation Average closed lower. The market in Asia and Europe closed lower. The dollar index closed up, energy futures were up too but the metals and soft commodities closed mixed. The US Treasury yields moved up.

From Briefing.com:

The S&P 500 rose 2.4% on Friday, overcoming an early 0.8% decline, as the market rallied into the close on no specific news […] The Nasdaq Composite gained 3.1%, the Dow Jones Industrial Average gained 1.7%, and the Russell 2000 gained 1.9%. Ten of the 11 S&P 500 sectors closed higher, paced by the information technology sector (+4.3%), […] The 2-yr yield decreased two basis points to 1.17%, and the 10-yr yield decreased three basis points to 1.78%. The U.S. Dollar Index was little changed at 97.24. WTI crude futures increased just 0.1%, or $0.12, to $86.74/bbl. […] Personal income increased 0.3% month-over-month in December (Briefing.com consensus 0.5%) while personal spending declined 0.6% (Briefing.com consensus -0.6%). The PCE Price Index increased 0.4% month-over-month, as expected, and was up 5.8% year-over-year versus 5.7% in November. The core PCE Price Index jumped 0.5% (Briefing.com consensus 0.4%) and was up 4.9% year-over-year versus 4.7% in November. […] The final January reading for the University of Michigan Index of Consumer Sentiment dropped to 67.2 (Briefing.com consensus 68.5) from the preliminary reading of 68.8. The final December reading was 70.6. The January reading is the lowest level for the index since November 2012. […] The Q4 Employment Cost Index increased 1.0% (Briefing.com consensus 1.1%) for the three-month period ending in December 2021 following a 1.3% increase in the third quarter. Wages and salaries, which account for about 70% of compensation costs, increased 1.1%, while benefit costs, which make up the remainder of compensation costs, increased 0.9%. […] Dow Jones Industrial Average -4.4% YTD S&P 500 -7.0% YTD Nasdaq Composite -12.3% YTD Russell 2000 -13.1% YTD