Directional Bias For The Day:

• S&P Futures are lower at 8:30 AM; broke below a sideways move since 3:45 PM on Thursday after the release of the CPI report
• The odds are for a down day with elevated volatility – watch for a break above 4018.25 for a change of sentiments
• The key economic data report due during the day:
  • CPI ( 1.0% vs. 0.7% est.; prev. 0.3%) at 8:30 AM
  • Core CPI ( 0.6% vs. 0.5% est.; prev. 0.6%) at 8:30 AM
  • Prelim UoM Consumer Sentiment ( 58.1 est.; prev. 58.4) at 10:00 AM
  • Prelim UoM Inflation Expectations ( prev. 5.3% ) at 10:00 AM

Directional Bias Before Open:

Weekly: In Correction Daily: Uptrend Under Pressure 120-Min: Side-Down

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

Key Levels:

• Critical support levels for S&P 500 are 3970.01, 3932.32, and 3892.83
• Critical resistance levels for S&P 500 are 3981.88, 4000.60, and 4017.17
• Key levels for E-mini futures: break above 4018.25, the high at 8:30 AM and a break below 3958.75, the low at 8:30 AM

Pre-Open

• On Thursday at 4:00 PM, S&P futures (June 2022) closed at 4015.00 and the index closed at 4017.82 – a spread of about -2.75 points; futures closed at 4016.25 for the day; the fair value is -1.25
• Pre-NYSE session open, futures are mixed – at 8:00 AM, S&P 500 futures were up by +0.25; Dow down by -73; and NASDAQ up by +59.00

Markets Around The World

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

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are mixed
  • Industrial metals are mostly higher
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 3.044%, up +28.8 basis points from two weeks ago;
  • 30-years is at 3.171%, up +18.0 basis points;
  • 2-years yield is at 2.803%, up +31.9 basis points;
  • The 10-Year-&-2-Year spread is at 0.241, up from 0.272
  • The 30-Year-&-10-Year spread is at 0.127, up from 0.235
• VIX
  • At 26.61 @ 7:00 AM; up from the last close; above the 5-day SMA;
  • Recent high = 35.48 on May 9; low = 24.94 on May 4
  • Sentiment: Risk-Off

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

Weekly:	The week ending on June 3 was a small red Harami candle near the close of the previous week; Stochastic (9,1, 3): %K is above %D following a Bullish Divergence RSI-9 is just above 40 The week was down -49.70 or -1.2%; the 5-week ATR  is 235.41 A down week; fourth in the least five weeks and eight in the previous ten weeks The weekly pivot point=4119.97, R1=4166.08, R2=4223.63; S1=4062.42, S2=4016.31; No pivot levels were breached Below 10-week EMA and 39-week SMA; at/below 89-week SMA In Correction
Daily	A large red following a red Harami candle that broke below past several days’ sideways move after finding resistance at around 4160.00, the lows of June 18, 2021 Stochastic (9, 1, 3): %K is below %D; near zero RSI-9 has declined to just above 40; below 8-day EMA; Below 20-day EMA; below 50-day EMA, 200-day SMA, and 100-day SMA; Uptrend under Pressure
2-Hour (E-mini futures)	Broke below a Descending Triangle after breaking above a Horizontal channel – the 61.8% extension target is near 4000.00 and the 100% extension target is near 3954.00; RSI-21 is below 30 from near 70 Below EMA20, which is below EMA10 of EMA50 Bias: Side-Down
30-Minute (E-mini futures)	Moving sideways between 4006.00 and 4030.00 after declining from 4164.00 on June 7 RSI-21 is drifted up from near 25 at 3:30 PM on Thursday to near 40 after making a Bullish Divergence at 6:30 AM Below EMA20, which is below EMA10 of EMA50 Bias: Down-Side
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) is moving sideways since 9:15 PM The Bollinger Band is narrow and stable Bias: Down-Side

Previous Session

Major U.S. indices closed lower on Thursday, June 9, in higher volume. Major indices broke below a sideways move that lasted several days. The major indices opened down and then mostly traded down for the rest of the day. Al S&P sectors closed down.

From Briefing.com:

[…] All 11 S&P 500 sectors finished lower, sporting losses that ranged from 1.5% to 2.8%, and the CBOE Volatility Index jumped 9.1% to 26.15. […] The worst-performing sector was the communication services sector (-2.8%), but the information technology (-2.7%) and financial (-2.6%) sectors were close behind. Eight of the 11 sectors declined at least 2.3%. […] Trading volume was not particularly heavy given the scope of today’s losses. 895 million shares traded at the NYSE, which wasn’t even the highest volume total of the week. The general lack of buying interest was evident in the market breadth, which favored declining issues by nearly a 5-to-1 margin at the NYSE and a margin approaching 3-to-1 at the Nasdaq. […] The 10-yr note yield settled its session up two basis points at 3.04%, but the 2-yr note yield jumped five basis points to 2.82% and hit its highest level since late-2018. The U.S. Dollar Index increased 0.8% to 103.32 as the euro pivoted from a point of strength immediately after the ECB announcement to a point of weakness. EUR/USD was down 0.9% to 1.0614. WTI crude futures had a relatively calm session, settling the day down 0.5% at $121.40/bbl. [..] Initial jobless claims for the week ending June 4 increased by 27,000 to 229,000 (Briefing.com consensus 208,000) while continuing claims for the week ending May 28 were unchanged at 1.306 million. […] Dow Jones Industrial Average: -11.3% YTD S&P 400: -13.0% YTD S&P 500: -15.7% YTD Russell 2000: -17.5% YTD Nasdaq Composite: -24.9% YTD Overseas:  Europe: DAX -1.7%, FTSE -1.5%, CAC -1.4% Asia: Nikkei +0.0%, Hang Seng +-0.7%, Shanghai -0.8% Commodities:  Crude Oil -0.56 @ 121.40 Nat Gas +0.30 @ 8.97 Gold -3.60 @ 1852.90 Silver -0.26 @ 21.82 Copper -0.06 @ 4.38