Directional Bias For The Day:

• S&P Futures are higher at 9:00 AM; futures drifting higher since 2:15 AM and nearing a resistance zone for the index at around 3958.00
• The odds are for an up day with elevated volatility – watch for a break below 3942.25 for a change of sentiments
• No major economic data report is due during the day:

Directional Bias Before Open:

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

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

Key Levels:

• Critical support levels for S&P 500 are 3919.83, 3901.89, and 3886.56
• Critical resistance levels for S&P 500 are 3933.04, 3958.37, and 3958.37
• The key levels for E-mini futures are a break above 3956.25, the high at 1:30 PM on Monday, and a break below 3942.25, the low at 7:15 PM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (March 2023) closed at 3941.75, and the index closed at 3919.25 – a spread of about +22.50 points; the futures closed at 3940.750; the fair value is +1.00
• Pre-NYSE session open, futures are higher – at 8:45 AM, S&P 500 futures were up +13.75, Dow by +100, and NASDAQ by +34.50

Markets Around The World

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

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

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • Precious metals are mixed
  • Industrial metals are mixed
  • Soft commodities are mostly lower
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.572, down -28.8 basis points from two weeks ago;
  • The 30-year is at 3.696%, down -24.8 basis points;
  • The 2-year yield is at 4.262%, down -14.2 basis points;
  • The 10-Year-&-2-Year spread is at -0.690, down from -0.544
  • The 30-Year-&-10-Year spread is at 0.124, up from 0.084
• VIX
  • At 20.72 @ 8:15 AM; up from the last close; below the 5-day SMA;
  • Recent high = 24.30 on December 22; low = 19.94 on December 21
  • Sentiment: Risk-On

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

Weekly:	The week ending on January 6 was a small green Spinning Top candle with a lower shadow bigger than the upper shadow Stochastic (9,1, 3): %K is crossing above %D from below 40; RSI-9 turned up to 50 The week was up +55.58 or +1.4%; the 5-week ATR  is 148.19 An up week, first in the last five weeks, and fourth in the previous ten weeks; The weekly pivot point=3865.20, R1=3936.07, R2=3977.06; S1=3824.21, S2=3753.34; R1/R2 pivot levels were breached Below 10-week EMA, 39-week SMA, and 89-week SMA Under Pressure
Daily	A small Bullish Engulfing candle with almost no upper shadow and a small lower shadow Stochastic (9, 1, 3): %K crossed above %D; RSI-9 is just below 60; above 8-DMA Above 20-day EMA, 50-day EMA, and 100-day SMA; below 200-day SMA; In Confirmed Uptrend
2-Hour (E-mini futures)	Moving up since 6:00 AM on January 10 from a support level – the upper bound of a symmetric triangle, which was broken earlier on Friday; broke above a symmetric triangle – the 61.8% extension target is near 3983.00, and the 100 extension target is near 4033.00 RSI-21 is just below 70 Above EMA20, which is above EMA10 of EMA50  Bias: Side-Up
30-Minute (E-mini futures)	Drifting 8:30 AM on Tuesday to the high of Monday at 3972.75 RSI-21 is moving around 60 Above EMA20, which is above EMA10 of EMA50 Bias: Up-Side
15-Minute (E-mini futures)	The Bollinger Band (20, 2.0) has been drifting up since 3:30 AM The Bollinger Band is expanding a bit since 8:00 AM with price at the upper band Bias: Side-Up

Previous Session

Major U.S. indices closed higher on Tuesday, January 10, in lower volume. Most major indices made small Bullish Engulfing or similar candles. The indices open lower and, after an initial hesitation for the first hour or so, moved higher. All but one S&P sector – Consumer Staples – closed higher.

From Briefing.com:

The stock market traded in mixed fashion to begin today’s session after yesterday’s rally fizzled out late in the afternoon trade. The major indices spent the first half of the day floating around their flat lines due to a lack of conviction from either buyers or sellers. […] Buyers exhibited more commitment, though, starting around midday. By the closing bell, advancing issues led declining issues by a roughly 5-to-2 margin at both the NYSE and the Nasdaq. The main indices closed near their best levels of the day, which left the S&P 500 comfortably above a key technical point (its 50-day moving average at 3,907). […] Ten of the 11 S&P 500 sectors closed in the green led by the communication services (+1.3%) and consumer discretionary (+1.3%) sectors. Meanwhile, the consumer staples sector (-0.2%) was alone in negative territory to close out the session. […] Treasury yields rose noticeably today. The 2-yr note yield rose six basis points to 4.26% and the 10-yr note yield rose ten basis points to 3.62%. […] December NFIB Small Business Optimism 89.8; Prior 91.9 November Wholesale Inventories 1.0%; Prior was revised to 0.6% from 0.5% S&P Midcap 400: ++3.5% YTD Russell 2000: +3.5% YTD Nasdaq Composite: +2.6% YTD S&P 500: +2.1%YTD Dow Jones Industrial Average: +1.7% YTD […] Overseas:  Europe: DAX -0.1%, FTSE -0.4%, CAC -0.6% Asia: Nikkei +0.8%, Hang Seng -0.3%, Shanghai -0.2% Commodities:  Crude Oil +0.55 @ 75.19 Nat Gas -0.24 @ 3.32 Gold -1.00 @ 1877.10 Silver -0.22 @ 23.66 Copper +0.05 @ 4.07 […]