Directional Bias For The Day:

• S&P Futures are higher at 9:00 AM; moving with large swings since 8:00 PM on Monday
• The odds are for an up day with elevated volatility – watch for a break below 3935.00 for a change of sentiments
• The key economic data report due during the day:
  • Final Servies PMI ( 44.3 est.; prev. 44.1) at 9:45 AM
  • ISM Services PM I ( 55.4 est.; prev. 56.7 ) at 10:00 AM

Directional Bias Before Open:

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

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

Key Levels:

• Critical support levels for S&P 500 are 3942.10, 3927.09, and  3906.21
• Critical resistance levels for S&P 500 are 3968.09, 3973.86, and 4016.17
• Key levels for E-mini futures: break above 3956.00, the high at 8:00 AM and a break below 3941.25, the low at 7:45 AM

Pre-Open

• On Friday at 4:00 PM, S&P futures (September 2022) closed at 3925.50, and the index closed at 3924.26 – a spread of about +1.25 points; the futures closed at 3924.50; the fair value is +1.00
• Pre-NYSE session open, futures are higher – at 8:45 AM, S&P 500 futures were up by +24.50, Dow by +208, and NASDAQ by +71.50

Markets Around The World

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

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

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • Precious metals are lower
  • Industrial metals are lower
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.260%, up +22.3 basis points from two weeks ago;
  • The 30-year is at 3.395%, up +15.3 basis points;
  • The 2-year yield is at 3.402%, up +8.8 basis points;
  • The 10-Year-&-2-Year spread is at -0.142, up from -0.277
  • The 30-Year-&-10-Year spread is at 0.135, down from 0.205
• VIX
  • At 25.59 @ 8:00 AM; down from the last close; below the 5-day SMA;
  • Recent high = 27.69 on August 30; low = 23.19 on September 2
  • Sentiment: Risk-On

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

Weekly:	The red candle that gapped down with small lower and upper shadows; Stochastic (9,1, 3): %K is below %D just above 30 RSI-9 is just above 40 The week was down -133.40 or -3.3%; the 5-week ATR  is 138.59 A down week; third in the least five weeks and fifth in the previous ten weeks; The weekly pivot point=3963.63, R1=4023.62, R2=4122.97; S1=3864.28, S2=3804.29; S1/S2 pivot levels were breached Above 10-week EMA, below 39-week SMA, and 89-week SMA Uptrend Under Pressure
Daily	A Bearish Engulfing candle that is just above the uptrend line from the June 17 low and after coming close to previous day’s low of 3903.65 Stochastic (9, 1, 3): %K crisscrossing %D near zero RSI-9 is below 30; below 8-day EMA; Below 20-day EMA, 50-day EMA, 100-day SMA, and 200-day SMA; Uptrend Under Pressure
2-Hour (E-mini futures)	Trending down since 2:00 PM on August 16; bouncing up since 2:00 PM on Friday just above the lows of 3902.50 at 10:00 AM on September 1; broke below the neckline of a Head-&-Shoulder pattern on August 26 – the 61.8% extension target near 3975.00 is achieved; the 100% extension target is near 3894.00, and the 161.8% extension target is near 3760.00; bounced up from a low of 3903.50 RSI-21 is above 50 after making a Bullish Divergence near 20 at 10:00 PM on September 1 Above EMA20, but below EMA10 of EMA50 Bias: Down-Side
30-Minute (E-mini futures)	Drifting sideways to up since 1:30 PM on September 2 RSI-21 is drifting higher; above 50 At/above EMA20, which is above EMA10 of EMA50 Bias: Side-Up
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) is drifting higher since 9:00 PM on September 4 The Bollinger Band is relatively narrow and stable Bias: Up

Previous Session

Major U.S. indices closed lower on Friday, September 2, in mixed volume. S&P 500 and NASDAQ Composite traded in higher volume. The major indices gapped higher at the open and then moved higher but turned round at noon and declined sharply. All but one S&P sector – Energy – closed down.

For the week, the major US indices closed lower in higher volume. The Asian exchanges closed down, and the European ones were mixed. The dollar index closed up, and most commodities were down. The US Treasury Yields inched up, and all S&Psectors were down.

From Briefing.com:

[…] Shortly after the open, market breadth showed advancers leading decliners by a 7-to-2 margin at the NYSE and a 3-to-2 margin at the Nasdaq. At the close, decliners led advancers by a roughly 3-to-2 margin at both the NYSE and the Nasdaq. […] Every S&P 500 sector reached positive territory this morning before the downside momentum left all the sectors in the red, with the exception of energy (+1.8%). […] WTI crude oil futures settled 0.5% higher at $86.91/bbl. Natural gas futures fell 5.4% to $8.75/mmbtu. The Treasury market also had a dynamic session with the 2-yr note yield ultimately falling 12 basis points to 3.40% while the 10-yr note yield fell seven basis points to 3.20%. […] August nonfarm payrolls increased by 315,000, average hourly earnings rose a smaller-than-expected 0.3% month-over-month, and the unemployment rate ticked up to 3.7% from 3.5% as the labor force participation rate jumped to 62.4% from 62.1%. […] Factory orders for manufactured goods declined 1.0% m/m in July (Briefing.com consensus +0.2%) following a downwardly revised 1.8% increase (from 2.0%) in June. Shipments of manufactured goods declined 0.9% after increasing 0.8% in June. […] Dow Jones Industrial Average: -13.8% YTD S&P 400: -15.8% YTD S&P 500: -17.7% YTD Russell 2000: -19.4% YTD Nasdaq Composite: -25.7% YTD