Directional Bias For The Day:

• S&P Futures are higher;
• The odds are for an up day with a good chance of sideways move from pre-open levels around 3365.00 – watch for a break below 3357.00 for change of sentiments
• Key economic data due:
  • PPI ( 0.6% vs. 0.3% est.; prev. -0.2%) at 8:30 AM
  • Core PPI ( 0.5% v. 0.1% est.; prev. -0.3%) at 8:30 AM

Directional Bias Before Open:

Weekly: Uptrend since March 23 Daily: Uptrend since March 23

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

Key Levels:

• Critical support levels for S&P 500 are 3353.61, 3335.44, and 3328.72
• Critical resistance levels for S&P 500 are 3375.05, 3386.69, and 3393.52
• Key levels for E-mini futures: break above 3379.00, the high of 6:00 AM and break below 3357.00, the low of 2:30 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (September 2020) closed at 3355.00 and the index closed at 3360.47 – a spread of about -5.50 points; futures closed at 3352.75 for the day; the fair value is +2.25
• Pre-NYSE session open, futures are mixed – at 9:00 AM, S&P 500 futures were up by +18.00; Dow up by +350 and NASDAQ down by -43.00

Markets Around The World

• Markets in East closed mostly higher – Shanghai and Singapore were down;
• European markets are higher
• Currencies:
  

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

• Commodities:
  

  Up	Down
  Crude Oil NatGas Cotton	Gold Silver Copper Platinum Palladium Sugar Coffee Cocoa

• Bond
  • 10-yrs yield is  at 0.627%, up from August 10 close of 0.574%;
  • 30-years is at 1.307% up from 1.248%
  • 2-years yield is at 0.149% up from 0.133%
  • The 10-Year-&-2-Year spread is at 0.478 up from 0.441
• VIX
  • Is at 21.26; down -0.87 from August 10 close; below 5-day SMA;
  • Recent high 33.67 on July 14; low 20.97 on August 6
  • Sentiment: Risk-Neutral

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

Monthly	Uptrend Resumed July 2020 was a green candle with almost no  upper and lower shadows; Stochastic %K is above %D and above 80; %K Bearish Divergence in January RSI-9 rising above 60 but still below a downtrend line from January 2018 high Rising above the middle band of the 120-month regression channel after the third break of the channel since 2009 and first close below it The sequence of higher highs and higher lows is broken
Weekly:	The week ending on August 7 was a green candle that gapped up with almost no upper and lower shadows Stochastic (9,1, 3): %K is above %D; above 90 RSI (9) is rising above 60 The week was up +80.16 or +2.5%; the 5-week ATR is 82.23 The weekly week pivot point =3329.45, R1=3374.37, R2=3397.37; S1=3306.36, S2=3286.44; R1/R2 pivot levels were breached An up week; fourth in last five weeks and seventh in last ten weeks The all-time high of 3393.52, the last swing high, was during the week of February 17; broke below the low of the week of December 24, 2018; support near 2193.81, the high during the week of August 15, 2016; sequence of higher highs and higher lows broken Above 10-week EMA, 39-week SMA and 89-week SMA Uptrend since March 23
Daily	A small green candle that looks like Doji with almost no upper shadow and small lower shadow; %K is crossing below %D; above 90 RSI-9 is near 70; above 8-day RSI Above 20-day EMA; above 200-day SMA, above 50-day EMA; above 100-day Uptrend since March 23
2-Hour (E-mini futures)	Moving up since 10:00 AM on July 30; broke above a descending triangle at 6:00 AM on August 3; 1.618% extension target near 3376.00 is achieved; RSI-21 declining since 4:00 AM from 80 %K is crisscrossing %D; Above EMA20, which is above EMA10 of EMA50 Bias: Up
30-Minute (E-mini futures)	Trending up to since July 30 in steps; retracing since 5:30 AM from 3379.00 RSI-21 declining from near 70 to below 60 %K is below %D; At/above EMA20, which is above EMA10 of EMA50 Bias: Up
15-Minute (E-mini futures)	Bollinger Band (20, 2.0) moving since 9:00 AM on August 7 The Bollinger Band expanded from 3:00 Am to 8:00 AM; flattening since Stochastic (9, 1, 3): %K is below %D below 20 Bias: Up

Previous Session

Major U.S. indices closed mostly higher on Monday, August 10 in mixed volume. NASDAQ Composite closed lower in lower volume. S&P 500 also traded in lower volume.

Dow Jones Industrial Average and Dow Jones Transportation Average were the leaders on Monday.

From Briefing.com:

The S&P 500 increased 0.3% on Monday, rising for the seventh straight session on the back of strong gains from the value-oriented and cyclical stocks. The Dow Jones Industrial Average (+1.3%) and Russell 2000 (+1.0%) gained at least 1.0%, while the Nasdaq Composite declined 0.4% amid relative weakness in the mega-caps. […] The broader trend, though, was heavily in favor of beaten-down cyclical stocks like those within the energy (+3.1%) and industrials (+2.4%) sectors, which rose more than 2.0%. The materials (+1.0%) and consumer discretionary (+0.7%) sectors followed suit, while communication services (-0.5%), information technology (-0.3%), and health care (-0.3%) lagged. […] U.S. Treasuries finished near their flat lines. The 2-yr yield remained unchanged at 0.13%, and the 10-yr yield increased one basis point to 0.57%. The U.S. Dollar Index gained 0.2% to 93.58. WTI crude futures gained 1.9%, or $0.78, to $41.95/bbl. […] Nasdaq Composite +22.2% YTD S&P 500 +4.0% YTD Dow Jones Industrial Average -2.6% YTD Russell 2000 -5.0% YTD