Directional Bias For The Day:

• S&P Futures are lower at 9:00 AM; down more than 13 after rising more than 45 since 6:00 AM
• The odds are for a sideways to an up day with elevated volatility – watch for a break below 3602.00 for a change in sentiments
• No key economic data report is due during the day:

Directional Bias Before Open:

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

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

Key Levels:

• Critical support levels for S&P 500 are 3600.40, 3588.10, and 3584.13
• Critical resistance levels for S&P 500 are 3627.75, 3633.91, and 3652.17
• Key levels for E-mini futures: break above 3628.25, the high of 8:30 AM and a break below 3602.00, the low of 7:45 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (December 2022) closed at 3623.25, and the index closed at 3612.39 – a spread of about +10.75 points; the futures closed at 3625.25; the fair value is -2.00
• Pre-NYSE session open, futures are lower – at 9:00 AM, S&P 500 futures were down by -12.75, Dow by -48, and NASDAQ by -46.50

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

• Commodities (Compared to two weeks ago):
  • Energy futures are mixed
  • Precious metals are higher
  • Industrial metals are higher
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.929%, up +5.1 basis points from two weeks ago;
  • The 30-year is at 3.917%, up +21.9 basis points;
  • The 2-year yield is at 4.312%, down -3.5 basis points;
  • The 10-Year-&-2-Year spread is at -0.383, down from -0.469
  • The 30-Year-&-10-Year spread is at -0.012, down from 0.180
• VIX
  • At 33.23 @ 8:00 AM; up from the last close; above the 5-day SMA;
  • Recent high = 34.88 on September 28; low = 28.50 on October 5
  • Sentiment: Risk-Off

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

Weekly:	The week ending on October 7 was a Shooting Str candle, albeit after almost no advance; near a support level around the low of June 13 week Stochastic (9,1, 3): %K crossed above %D; below ten RSI-9 is just above 35 The week was down -180.15 or -4.7%; the 5-week ATR  is 212.40 An up week; second in the last five weeks, and fourth in the previous ten weeks; The weekly pivot point=3683.83, R1=3762.74, R2=3885.81; S1=3560.76, S2=3481.85; R1/R2 pivot levels were breached Below 10-week EMA, 39-week SMA, and 89-week SMA Uptrend Under Pressure
Daily	A Hammer candle; Stochastic (9, 1, 3): %K is below %D near 10 RSI-9 is around 35; below 8-day EMA; Below 20-day EMA, 50-day EMA, 100-day SMA, and 200-day SMA; In Correction
2-Hour (E-mini futures)	Declining since 2:00 PM on October 5 RSI-21 has bounced above 45 after making a Bullish Divergence at 4:00 AM At/below EMA20, which is below EMA10 of EMA50 Bias: Side-Down
30-Minute (E-mini futures)	Drifting sideways to down since 6:00 PM on October 9 RSI-21 is above 50 after making a Bullish Divergence At/below EMA10 of EMA50, which is above EMA20 Bias: Down-Side
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) is drifting down since 2:30 AM The Bollinger Band is expanding a bit since 7:30 AM, with the price walking up the upper band Bias: Side-Up

Previous Session

Major U.S. indices closed lower on Monday, October 10, in lower volume. Most indices made Hammer or similar candlestick formations. The market opened higher but declined in the first half hour of trading. It turned around in the afternoon and clawed back some losses before the close.

From Briefing.com:

[…] The major indices opened to modest gains before sizable losses in mega cap and semiconductor stocks dragged the market into negative territory. […] Falling oil prices weighed on the S&P 500 energy sector (-2.1%), which closed in last place on the day after surging 13.7% last week. WTI crude oil futures fell 1.7% to $90.92/bbl. Natural gas futures fell 4.3% to $6.46/mmbtu. On the flip side, industrials (+0.3%) sat atop the leaderboard with a slim gain. […] Dow Jones Industrial Average: -19.6% YTD S&P Midcap 400: -20.4% YTD S&P 500: -24.2% YTD Russell 2000: -24.7% YTD Nasdaq Composite: -32.6% YTD Overseas:  Europe: DAX +0.1%, FTSE -0.5%, CAC -0.5% Asia: Nikkei market closed, Hang Seng -3.0%, Shanghai -1.7% Commodities:  Crude Oil -1.55 @ 90.92 Nat Gas -0.29 @ 6.46 Gold -30.80 @ 1676.60 Silver -0.59 @ 19.64 Copper +0.05 @ 3.44