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:

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:

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