Directional Bias For The Day:

• S&P Futures are lower at 8:30 AM; the futures are drifting lower since 12:00 AM
• The odds are for a down day with elevated volatility – watch for a break above 4150.25 for a change of sentiments
• A Double Bottom pattern is emerging – a lasting break below 4129.25 will have a 61.8% extension target near 4133.00 and the 100% extension target near 4103.00
• The key economic data report due during the day:
  • Prelim Nonfarm Productivity (-4.6% vs.; prev. -4.6% est.; prev. -7.3%) at 8:30 AM
  • Prelim Unit Labor Costs ( 10.8% vs. 9.4% est.; prev. 12.6%) at 8:30 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4124.93, 4111.49, and 4107.31
• Critical resistance levels for S&P 500 are 4151.91, 4160.16, and 4186.62
• Key levels for E-mini futures: break above 4150.25, the high at 5:15 AM and a break below 4123.50, the low at 8:00 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (September 2022) closed at 4141.50,  and the index closed at 4140.06 – a spread of about +1.50 points; the futures closed at 4141.75; the fair value is -0.25
• Pre-NYSE session open, futures are lower – at 8:15 AM, S&P 500 futures were down by -14.50, Dow by -44; and NASDAQ by -98.75

Markets Around The World

• Markets in the East closed mixed – Shanghai, Sydney, and Seoul closed up; Hong Kong and Tokyo were down; Mumbai and Singapore were closed for trading
• European markets are mostly lower – Spain is higher
• Currencies (Compared to two weeks ago):

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • Precious metals are higher
  • Industrial metals are higher
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 2.765%, down -5.5 basis points from two weeks ago;
  • The 30-year is at 2.998%, down -5.1 basis points;
  • The 2-year yield is at 3.205%, up +17.2 basis points;
  • The 10-Year-&-2-Year spread is at -0.440, down from -0213
  • The 30-Year-&-10-Year spread is at 0.233, up from 0.229
• VIX
  • At 21.87 @ 6:45 AM; up from the last close; above the 5-day SMA;
  • Recent high = 29.06 on July 13; low = 21.21 on July 29
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed mostly higher on Monday, August 8, in mixed volume. S&P 500 and NASDAQ Composite closed down in lower volume.

The major indices gapped up at the open but started to decline in the first half-hour of trading.

From Briefing.com:

[…] The main indices trended higher in the early going before losing steam around midmorning and giving back those gains. The market moved sideways from that point, closing just off intraday lows. […] Separately, WTI crude oil futures tipped back above the $90.00/bbl mark today, settling up 2.2% to $90.67/bbl. […] Also, the 2s10s spread widened today. The 2-yr note yield fell three basis points to 3.20% while the 10-yr note yield fell eight basis points to 2.77%. […] Dow Jones Industrial Average: -9.7% YTD S&P 400: -11.3% YTD S&P 500: -13.1% YTD Russell 2000: -13.5% YTD Nasdaq Composite: -19.2% YTD Overseas:  Europe: DAX +0.8%, FTSE +0.6%, CAC +0.8% Asia: Nikkei +0.3%, Hang Seng -0.8%, Shanghai +0.3% Commodities:  Crude Oil +1.94 @ 90.67 Nat Gas -0.49 @ 7.57 Gold +15.10 @ 1805.40 Silver +0.79 @ 20.62 Copper +0.04 @ 3.59