Directional Bias For The Day:

• S&P Futures are lower at 9:00 AM; breaking below a descending triangle on a 15-minute chart – the 61.8% extension target is near 4028.00, and the 100% extension target is near 4015.00
• The odds are for a down day with elevated volatility – watch for a break above 4064.00 for a change of sentiments
• The key economic data report is due during the day:
  • Final Services PMI ( 46.1 est.; prev. 46.1) at 9:45 AM
  • ISM Services PMI ( 53.5 est.; prev. 54.4) at 10:00 AM
  • Factory Orders ( 0.7% est.; prev. 0.3%) at 10:00 AM

Directional Bias Before Open:

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

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

Key Levels:

• Critical support levels for S&P 500 are 4046.44, 4026.63, and 4015.64
• Critical resistance levels for S&P 500 are 4061.01, 4080.48, and 4087.30
• The key levels for E-mini futures: break above 4064.00, the high at 6:45 AM, and a break below 4042.50, the low of 11:00 AM on Friday

Pre-Open

• On Friday at 4:00 PM, S&P futures (December 2022) closed at 4075.25, and the index closed at 4071.70 – a spread of about +3.75 points; the futures closed at 4075.50; the fair value is -0.25
• Pre-NYSE session open, futures are lower – at 8:30 AM, S&P 500 futures were down by -18.00, Dow by -162, and NASDAQ by -46.50

Markets Around The World

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

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

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • Precious metals are higher
  • Industrial metals are mostly lower
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.521%, down -29.7 basis points from two weeks ago;
  • The 30-year is at 3.566%, down -36.1 basis points;
  • The 2-year yield is at 4.292%, down -22.2 basis points;
  • The 10-Year-&-2-Year spread is at -0.768, down from -0.696
  • The 30-Year-&-10-Year spread is at 0.043, down from 0.109
• VIX
  • At 20.01 @ 6:45 AM; up from the last close; below the 5-day SMA;
  • Recent high = 26.59 on November 10; low = 18.95 on December 2
  • Sentiment: Risk-Off-Neutral

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

Weekly:	The week ending on December 2 was a green candle with a small upper shadow and a relatively long lower shadow Stochastic (9,1, 3): %K is above %D above 90 but turning down; RSI-9 is near 60 The week was up +45.58 or +1.1%; the 5-week ATR  is 171.35 An up week, third in the last five weeks, and sixth in the previous ten weeks; The weekly pivot point=4036.62, R1=4135.59, R2=4199.48; S1=3972.73, S2=3873.76; R1/R2/S1 pivot levels were breached Above 10-week EMA, below 39-week SMA, and 89-week SMA Uptrend
Daily	A green candle with a small lower shadow and almost no upper shadow with a close near the previous day’s close and an open is much below it Stochastic (9, 1, 3): %K is crossing below %D RSI-9 is around 65; above 8-day EMA; Above 20-day EMA, 50-day EMA, 100-day SMA, and 200-day SMA; Confirmed Uptrend
2-Hour (E-mini futures)	Drifting lower since 4:00 PM on November 30 after rising more than hundred forty points during the day RSI-21 has declined to just above 40 from near 90 Below EMA20, but above EMA10 of EMA50 Bias: Side-Down
30-Minute (E-mini futures)	Drifting down since 6:00 PM on November 30; RSI-21 has moved down from above 50 to just above 40 Below EMA20, which is below EMA10 of EMA50 Bias: Side-Down
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) has been drifting lower since 1:00 AM. The Bollinger Band is expanding a bit since 3:00 AM, with price mostly walking down the lower band. Bias: Side-Down

Previous Session

Major U.S. indices closed mixed on Friday, December 2, in mixed volume. Dow Jones Industrial Average, Russell 2000, and NYSE Composite closed higher. The two major Do indices traded in higher volume.

The major indices gapped down at the open but immediately started to rise and continued to rise gradually for the day.

For the week, the major indices closed higher in higher volume. The markets in Asia and Europe mainly closed higher. The dollar index closed. The energy futures were mixed, the precious and industrial metals closed up, and more soft commodities closed higher for the week. The US Treasury yields closed down. All but two S&P sectors – Energy and Financials  – closed higher.

From Briefing.com:

[…] The Dow Jones Industrial Average, S&P 500, and Nasdaq were down 1.0%, 1.2%, and 1.6%, respectively, right out of the gate and the S&P 500 breached support at its 200-day moving average (4,046). Buyers got back involved following that breach and brought the S&P 500 back above that key level where it vacillated for much of the day. […] The 2-yr note yield, which hit 4.38% earlier, settled at 4.29%. The 10-yr note yield, which hit 3.60% earlier, settled at 3.51%. The U.S. Dollar Index, which was up as much as 0.8% following the employment report, ended down 0.2% at 104.53. Notably, the Russell 2000 closed with a 0.6% gain and the Dow Jones Industrial Average made its way back above the unchanged line. Roughly half of the 11 S&P 500 sectors closed in the green. Materials (+1.1%) enjoyed the biggest gain while energy (-0.6%) fell to the bottom of the pack. Dow Jones Industrial Average: -5.3% YTD S&P Midcap 400: -9.4% YTD Russell 2000: -15.7% YTD S&P 500: -14.6% YTD Nasdaq Composite: -26.7% YTD Reviewing today’s economic data: November nonfarm payrolls rose by 263,000 (Briefing.com consensus 200,000) following a revised 284,000 increase in October (from 261,000). Nonfarm private payrolls increased by 221,000 (Briefing.com consensus 200,000) following a revised 248,000 increase in October (from 233,000). Average hourly earnings were up 0.6% (Briefing.com consensus 0.3%) versus a prior revised 0.5% increase (from 0.4%). The unemployment rate was unchanged at 3.7%. The average workweek fell to 34.4 hours from 34.5 in October. […]