Directional Bias For The Day:

• S&P Futures are higher 9:00 AM; trending up since 10:00 AM on Tuesday
• The odds are for an up day; watch for a break below 4539.75 for a change of fortunes
• Key economic data report due during the day:
  • Final Wholesale Inventory ( 2.1% est.; prev. 2.1%) at 10:00 AM

Directional Bias Before Open:

Weekly: Correction Daily: Confirmed Uptrend 120-Min: Side-Up

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

Key Levels:

• Critical support levels for S&P 500 are 4531.32, 4513.66, and 4494.38
• Critical resistance levels for S&P 500 are 4569.29, 4595.31, and 4602.11
• Key levels for E-mini futures: break above 4557.00, the high of 8:00 AM and break below 4539.75, the low of 4:45 AM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (March 2022) closed at 4513.25 and the index closed at 4521.54 – a spread of about -8.25 points; futures closed at 4512.50 for the day; the fair value is +0.75
• Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +42.25; Dow by +251; and NASDAQ by +187.50

Markets Around The World

• Markets in the East closed higher
• European markets are higher
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are lower
  • Industrial metals are higher
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 1.933%, up +15.0 basis points from two weeks ago;
  • 30-years is at 2.233%, up +10.4 basis points;
  • 2-years yield is at 1.345%, up +32.9 basis points;
  • The 10-Year-&-2-Year spread is at 0.588, down from 0.767
  • The 30-Year-&-10-Year spread is at 0.300, down from 0.346
• VIX
  • At 20.73 @ 6:45 AM; down from the last close; below the 5-day SMA;
  • Recent high = 26.26 on February 4; low = 20.46 on February 2
  • Sentiment: Risk-On

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 February 2 was a green candle  with a long upper shadow and almost no lower 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 +1.5%; the 5-week ATR  is 200.38 An up week; second in the last five weeks, and fifth in the previous ten weeks The weekly pivot point=4504.29, R1=4592.55, R2=4684.58; S1=4411.26, S2=4322.00; R1 pivot level was breached Below 10-week EMA and 39-week SMA; above 89-week SMA In Correction
Daily	A Bullish Engulfing with almost no upper and lower shadows; Stochastic (9, 1, 3): %K crossed above %D RSI-9 is turning up from just below 50; above 8-day EMA; At/below 20-day EMA; below 50-day EMA and 100-day SMA; above 200-day SMA Confirmed Uptrend
2-Hour (E-mini futures)	Moving up since 10:00 AM on February 8; forming a saucer pattern since 6:00 AM on February 2; breaking above the downtrend line from the all-time highs; downtrend since January 4 – lower lows and lower highs; RSI-21 is moving up; above 70 Above EMA 20, which is above EMA10 of EMA50 Bias: Side-Up
30-Minute (E-mini futures)	Forming a saucer pattern since 7:30 AM on February 2 within an 80-point range RSI-21 is moving up; above 70 Above EMA20, which is above EMA10 of EMA50 Bias: Side-Up
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) is moving up since 10:45 AM on February 8 The Bollinger Band since 3:45 AM with price walking  up the upper bound Stochastic (9, 1, 3): %K is crisscrossing %D above 80 Bias: Up

Previous Session

Major U.S. indices closed higher on Tuesday, February 8, in mixed volume. S&P 500 and Russell 2000 traded in lower volume. The indices opened lower and briefly declined in the first hour of trading before turning around and then drifted higher for the rest of the day. Most made Bullish Engulfing and similar bullish candlestick formations.

From Briefing.com:

The S&P 500 gained 0.8% on Tuesday, as the market drifted higher while investors digested another increase in interest rates and individual storylines. The Dow Jones Industrial Average (+1.1%), Nasdaq Composite (+1.3%), and Russell 2000 (+1.6%) each outperformed the benchmark index. Eight of the 11 S&P 500 sectors closed higher, including five that gained at least 1.0%. The materials sector (+1.6%) was the top-performer, and the heavily-weighted information technology sector (+1.3%) wasn’t too far behind. The energy sector (-2.1%), on the other hand, declined 2% as oil prices fell below $90 per barrel ($89.43, -1.84, -2.0%) […] Regarding interest rates, the 10-yr yield came within three basis points of the 2.00% level before settling at 1.95%, or four basis points above yesterday’s settlement. The 2-yr yield rose five basis points to 1.34% amid lingering expectations for five rate hikes this year. The U.S. Dollar Index increased 0.2% to 95.60. […] The December Trade Balance Report showed a widening in the trade deficit to $80.7 billion (Briefing.com consensus -$79.6 billion) from an upwardly revised $79.3 billion (from -$80.2 billion) in November. December exports were $3.4 billion more than November exports while December imports were $4.8 million more than November imports. […] The NFIB Small Business Optimism Index for January decreased to 97.1 from 98.9 in December. […] Dow Jones Industrial Average -2.4% YTD S&P 500 -5.1% YTD Russell 2000 -8.9% YTD Nasdaq Composite -9.3% YTD Overseas:  Europe: DAX +0.2%, FTSE -0.1%, CAC +0.3% Asia: Nikkei +0.1%, Hang Seng -1.0%, Shanghai +0.7% Commodities:  Crude Oil -2.05@ 89.32 Nat Gas -0.02 @ 4.23 Gold +7.60 @ 1829.06 Silver +0.18 @ 23.25 Copper -0.01 @ 4.47