Directional Bias For The Day:

• S&P Futures are higher at 9:00 AM; down more than 40 points from the 2:15 high of 3807.50
• The odds are for an up day with elevated volatility; good chance of a sideways to down move from pre-open levels around 3760.00 – watch for a break above 3788.00 and a break below 3735.25
• No key economic data report due during the day:

Directional Bias Before Open:

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

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

Key Levels:

• Critical support levels for S&P 500 are 3734.30, 3723.34, and 3694.12
• Critical resistance levels for S&P 500 are 3770.68, 3800.25, and 3813.33
• Key levels for E-mini futures: break above 3788.00, the high at 8:30 AM and a break below 3735.25, the low at 15:45 PM

Pre-Open

• On Monday at 4:00 PM, S&P futures (September 2022) closed at 3753.25 and the index closed at 3900.86 – a spread of about +3.75 points; futures closed at 3753.50 for the day; the fair value is -0.25
• Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +26.25; Dow by +132; and NASDAQ by +110.75

Markets Around The World

• Markets in the East closed mostly lower – Shanghai and Hong Kong closed higher
• European markets are mostly lower – Germany and Italy are higher
• 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 lower
  • Soft commodities are mostly lower
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 3.366%, up +52.2 basis points from two weeks ago;
  • 30-years is at 3.367%, up +31.0 basis points;
  • 2-years yield is at 3.358%, up +80.5 basis points;
  • The 10-Year-&-2-Year spread is at 0.008, up from 0.291
  • The 30-Year-&-10-Year spread is at 0.001, up from 0.213
• VIX
  • At 33.28 @ 8:45 AM; down 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-Neutral

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

Weekly:	The week ending on June 10 was a large Bearish Engulfing candle near the 38.2% Fibonacci retracement level of the previous rally from March 2020 Stochastic (9,1, 3): %K is below %D RSI-9 is just above 30 The week was down -207.68 or -5.1%; the 5-week ATR  is 240.10 A down week; fourth in the least five weeks and nine in the previous ten weeks The weekly pivot point=3989.93, R1=4079.71, R2=4258.55; S1=3811.09, S2=3721.31; R1/S1/S2/S3 pivot levels were breached Below 10-week EMA and 39-week SMA; at/below 89-week SMA In Correction
Daily	A large red that gapped down; near the lows of Marc4, 2021; Stochastic (9, 1, 3): %K has crossed above %D from near zero RSI-9 is just above 25; below 8-day EMA; Below 20-day EMA; below 50-day EMA, 200-day SMA, and 100-day SMA; In Correction
2-Hour (E-mini futures)	Broke below the May 20 and is just below a lower limit of a Horizontal Channel RSI-21 bounced up above 30 from near 10 Below EMA20, which is below EMA10 of EMA50 Bias: Side-Down
30-Minute (E-mini futures)	Moving sideways to down since 4:00 AM on Monday near the lows following the gap down open for the week RSI-21 is drifting down to 40 from 50 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 to down since 4:15 PM The Bollinger Band is relatively contacting a bit since 8:00 AM Bias: Down-Side

Previous Session

Major U.S. indices closed lower on Monday, June 13, in higher volume. Major indices gapped down at the open and did not close the gap. Thee have been two such gap-down days for the market. Most major indices broke below the recent lows.

S&P 500, Dow Jones Industrial Average, Dow Jones Transportation Average, and NYSE Composite are at the March 2021 lows. NASDAQ Composite and Wilshire 5000 Total Market Index are below that level and are near November 2020 lows. The Russell 2000 is the leader and it has not yet broken below the MAy 2022 lows.

From Briefing.com:

[..] The 2-yr note yield settled the day up 23 basis points at 3.27%, and then climbed as high as 3.43% following the close of the cash session […] Similarly, the 10-yr note yield settled the day up 21 basis points at 3.37%, and also went to 3.43% following the close of the cash session. […] As of this writing, Bitcoin was down 15.5% to $23,212.40 while Ethereum was down 17.2% to $1228.22. […] Declining issues outpaced advancing issues by by a 16-to-1 margin at the NYSE (that spread was 23-to-1 shortly after the open) and by a 7-to-1 margin at the Nasdaq (that spread was 11-to-1 shortly after the open). All 11 S&P 500 sectors closed with losses that ranged from 2.2% (consumer staples) to 5.1% (energy). Nine of the 11 sectors fell at least 3.0%. The Vanguard Mega-Cap Growth ETF (MGK) dropped 4.5% while the Invesco S&P 500 Equal Weight ETF (RSP) fell 4.0%. The Russell 3000 Growth Index declined 4.5% and the Russell 3000 Value Index declined 3.8%. […] Dow Jones Industrial Average: -16.4% YTD S&P 400: -19.3% YTD S&P 500: -21.3% Russell 2000: -23.6% YTD Nasdaq Composite: -30.9% Overseas:  Europe: DAX -2.4%, FTSE -1.5%, CAC -2.7% Asia: Nikkei -3.0%, Hang Seng -3.4%, Shanghai -0.9% Commodities:  Crude Oil +0.22 @ 120.96 Nat Gas -0.23 @ 8.60 Gold -43.20 @ 1832.10 Silver -0.70 @ 21.25 Copper -0.08 @ 4.21