Directional Bias For The Day:

• S&P Futures are lower at 9:00 AM; moving down since 2:45 AM
• The odds are for a down with elevated volatility – watch for a break above 4161.50 for a change of sentiments
• The key economic data report due during the day:
  • Non-Farm Employment Change ( 390K vs. 325K est.; prev. 436K) at 8:30 AM
  • Average Hourly Earnings ( 0.3% vs. 0.4% est.; prev. 0.3%) at 8:30 AM
  • Unemployment Rate ( 3.6% % vs. 3.5% est.; prev. 3.6%) at 8:30 AM
  • Final Services ( 53.5% est.; prev. 53.5%) at 10:00 AM
  • ISM Services PMI ( 56.5 est.; prev. 57.1) at 10:00 AM

Directional Bias Before Open:

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

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

Key Levels:

• Critical support levels for S&P 500 are 4128.54, 4111.93, 4074.37
• Critical resistance levels for S&P 500 are 4149.85, 4177.51, and 4195.15
• Key levels for E-mini futures: break above 4161.50, the high at 8:30 AM and a break below 4110.00, the low at 11:30 AM on Thursday

Pre-Open

• On Thursday at 4:00 PM, S&P futures (June 2022) closed at 4175.75 and the index closed at 4176.82 – a spread of about -1.00 points; futures closed at 4175.25 for the day; the fair value is +0.50
• Pre-NYSE session open, futures are lower – at 9:00 AM, S&P 500 futures were down by -40.00; Dow by -213; and NASDAQ by -157.00

Markets Around The World

• Markets in the East closed mostly higher – Mumbai closed lower; Shanghai and Hong Kong were closed
• European markets are mixed – Germany, France, Switzerland, and STOXX 600 are higher; the U.K., Spain, and Italy are lower
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are higher
  • Industrial metals are higher
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 2.913%, up +5.8 basis points from two weeks ago;
  • 30-years is at 3.076%, up +1.0 basis points;
  • 2-years yield is at 2.629%, up +4.6 basis points;
  • The 10-Year-&-2-Year spread is at 0.284, down from 0.272
  • The 30-Year-&-10-Year spread is at 0.163, up from 0.211
• VIX
  • At 25.47 @ 8:45 AM; up from the last close; below the 5-day SMA;
  • Recent high = 35.48 on May 9; low = 24.94 on May 4
  • Sentiment: Risk-Off
  • Broke below a symmetrical triangle

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

Weekly:	The week ending on May 27 was a large green candle that formed a three-day Morning Star pattern; bouncing off from the 38.2% Fibonacci retracement level of the rally from March 23, 2020 lows. Stochastic (9,1, 3): %K crossed above %D; Bullish Divergence RSI-9 is just above 40 The week was up +256.88 or +6.6%; the 5-week ATR  is 251.51 An up week; first in the least five weeks and third in the previous ten weeks The weekly pivot point=4063.95, R1=4252.78, R2=4347.31; S1=3969.42, S2=3780.59; R1 pivot level was breached Below 10-week EMA and 39-week SMA; at/below 89-week SMA In Correction
Daily	A Bullish Engulfing candle; the past four days’ price-action is sideways; finding resistance at around 4160.00, the lows of June 18, 2021 Stochastic (9, 1, 3): %K crossed above %D; above 80 RSI-9 moved above 60; above 8-day EMA; Above 20-day EMA; below 50-day EMA, 200-day SMA, and 100-day SMA; Uptrend
2-Hour (E-mini futures)	Broke the sequence of lower highs and lower lows since March 29; broke above a Horizontal channel bounded between 4055.00 and 3856.00 – the 61.8% extension target is near 4195.00 and the 100% extension target is near 4275.00 RSI-21 declined from a high near 90 on May 30 to around 45 At/below EMA20, which is above EMA10 of EMA50 Bias: Up-Side
30-Minute (E-mini futures)	Drifting down since 2:00 AM RSI-21 is just above 50 Below EMA20, which is at/above EMA10 of EMA50 Bias: Side-Down
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) is moving down since 2:45 AM The Bollinger Band is expanding since 2:45 AM with price walking down the lower band Bias: Side-Down

Previous Session

Major U.S. indices closed higher on Thursday, June 2, in lower volume. The major indices opened lower but started to move up after making a Double Bottom at around 4074.00, just above the gap created on May 27.

From Briefing.com:

[…] The major indices all closed at their best levels for the session, gaining between 1.3% and 2.7%. In turn, the CBOE Volatility Index dropped 4.2% to 24.62 and saw its first move below 25.00 since May 4. […] WTI crude futures settled their session up 1.3% at $116.80/bbl. […] The 10-yr note yield slipped two basis points to 2.91% while the 2-yr note yield also fell two basis points to 2.63%. [..] Q1 Productivity was revised to -7.3% (Briefing.com consensus -7.5%) from the preliminary reading of -7.5%. Unit labor costs were revised to +12.6% (Briefing.com consensus +11.6%) from the preliminary reading of +11.6%. […] Initial jobless claims for the week ending May 28 decreased by 11,000 to 200,000 (Briefing.com consensus 210,000). Continuing jobless claims for the week ending May 21 decreased by 34,000 to 1.309 million, which is the lowest level since December 27, 1969. […] Factory orders for manufactured goods increased 0.3% m/m in April (Briefing.com consensus +0.7%) following a 1.8% increase in March. Shipments of manufactured goods rose 0.2% after increasing 2.2% in March. […] ADP estimated that 128,000 jobs were added to private-sector payrolls in May (Briefing.com consensus 295,000) following a downwardly revised 202,000 (from 247,000) in April. […] Dow Jones Industrial Average -8.4% YTD S&P 400 -10.4% YTD S&P 500 -12.4% YTD Russell 2000 -15.5% YTD Nasdaq Composite -21.3% YTD Overseas:  Europe: DAX +1.0%, FTSE market closed, CAC +1.3% Asia: Nikkei -0.2%, Hang Seng -1.0%, Shanghai +0.4% Commodities:  Crude Oil +1.47 @ 116.80 Nat Gas -0.20 @ 8.49 Gold +21.00 @ 1872.70 Silver +0.39 @ 22.32 Copper +0.22 @ 4.55