Directional Bias For The Day:

• S&P Futures are lower;
• The odds are for a sideways to down day – watch for a break above 3584.25 for change of sentiments
• Key economic data due:
  • Unemployment Claims ( 881K vs. 955K est.; prev. 1006K) at 8:30 AM
  • Revised Nonfarm Productivity ( 10.1% s 7.3% est.; prev.7.3%) at 8:30 AM
  • Revised Unit Labor Costs ( 9.0% vs. 12.0% est.; prev. 12.2%) at 8:30 AM
  • Trade Balance ( -63.6B vs. -58.2B est.; -50.7B) at 8:30 AM
  • Final Services PMI ( 54.8 est.; prev. 54.8) at 9:45 AM
  • ISM Non-Manufacturing PMI ( 57.0 est.; prev.58.1) at 10:00 AM

Directional Bias Before Open:

Weekly: Uptrend Daily: Uptrend

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

Key Levels:

• Critical support levels for S&P 500 are 3560.02, 3538.20, and 3528.03
• Critical resistance levels for S&P 500 are 3576.56, 3588.08, and 3600.89
• Key levels for E-mini futures: break above 3584.25, the high of 3:30 AM and break below 3533.75, the low of 10:00 AM on Wednesday

Pre-Open

• On Wednesday at 4:00 PM, S&P futures (September 2020) closed at 3576.50 and the index closed at 3580.84 – a spread of about -4.25 points; futures closed at 3579.25 for the day; the fair value is -2.75
• Pre-NYSE session open, futures are mixed – at 8:30 AM, S&P 500 futures were down by -12.50; Dow up by +13, and NASDAQ down by -133.75

Markets Around The World

• Markets in East closed mixed – Shanghai, Hong Kong, Mumbai, and Singapore closed down; Tokyo, Sydney, and Seoul closed up
• European markets are higher
• Currencies:
  

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

• Commodities:
  

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

• Bond
  • 10-yrs yield is at 0.648%, down from September 2 close of 0.651%;
  • 30-years is at 1.381% up from 1.375%
  • 2-years yield is at 0.141% unchanged
  • The 10-Year-&-2-Year spread is at 0.507 down  from 0.510
• VIX
  • Is at 26.21; down -0.36 from September 2 close; above 5-day SMA;
  • Recent high 33.67 on July 14; low 20.28 on August 11
  • Sentiment: Risk-Neutral

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

Monthly	Uptrend Resumed August 2020 was a green candle with almost small upper shadow and almost no lower shadow; Stochastic %K is above %D and above 90; %K Bearish Divergence in January RSI-9 rising near 70; breaking above a downtrend line from January 2018 high Rising above the upper band of the 120-month regression channel for the first time after February 2020; broke below the lower channel in march 2020 The sequence of higher highs and higher lows is resumed
Weekly:	The week ending on August 28 was a relatively large green candle with almost no upper and lower shadows Stochastic (9,1, 3): %K crisscrossing %D; above 90 RSI (9) is rising above 75 The week was up +110.85 or +3.3%; the 5-week ATR is 73.65 The weekly week pivot point=3476.79, R1=3540.45, R2=3572.89; S1=3444.35, S2=3380.69; R1/R2/R3 pivot levels were breached An up week; fifth in the last five weeks and eight in last ten weeks Made all-time closing and intraday highs; last swing low 2965.66 made during the week of June 15 Above 10-week EMA, 39-week SMA, and 89-week SMA Uptrend since March 23
Daily	A green candle that gapped up at the open with very small lower and upper shadows; %K is crisscrossing %D; above 90 RSI-9 is turning up; near 90; above 8-day RSI Above 20-day EMA; above 200-day SMA, above 50-day EMA; above 100-day Uptrend
2-Hour (E-mini futures)	Moving sideways to down since 2:00 PM on Wednesday; moving up after a brief dip on August 31; all-time high at 6:00 AM RSI-21 turned down near 50; Bearish Divergence at 6:00 PM Above EMA20, which is above EMA10 of EMA50 Bias: Up
30-Minute (E-mini futures)	Moving sideways to down since 3:00 PM on Wednesday RSI-21 turning below50 from above 75; Bearish Divergence at 3:30 PM %K is crisscrossing %D around 20 Below EMA10 of EMA50, which is below EMA20 Bias: Up-Side
15-Minute (E-mini futures)	Bollinger Band (20, 2.0) moving sideways to down since 7:45 PM The Bollinger Band narrowed from 8:00 PM to 5:15 AM; expanding sing with price walking down the lower band Stochastic (9, 1, 3): %K is crisscrossing %D higher from below 10 Bias: Up-Side

Previous Session

Major U.S. indices closed higher on Wednesday, September 2 in mostly higher volume. Dow Jones Transportation Average traded in lower volume. NASDAQ Composite, S&P 500, and Wilshire 5000 Total Market Index made all-time closing and intraday highs. All S&P sectors except Energy closed higher.

From Briefing.com:

The S&P 500 rose 1.5% on Wednesday for its 22nd record close of the year, as the bull market found strong support from a wide range of equities. The Nasdaq Composite also set new records with a 1.0% gain. The Dow Jones Industrial Average rose 1.6%, and the Russell 2000 rose 0.9%. Ten of the 11 S&P 500 sectors closed in positive territory, with gains ranging from 0.9% (information technology) to 3.1% (utilities). Only the energy sector (-0.4%) closed lower, largely due to the decline in oil prices ($41.54/bbl, -1.22, -2.9%). […] Interestingly, optimism in the growth outlook might not have played a role in today’s gains. For instance, the U.S. Treasury curve experienced some curve-flattening activity due to an uptick in longer-dated Treasuries. The 2-yr yield increased two basis points to 0.13%, while the 10-yr yield declined two basis points to 0.65%. The U.S. Dollar Index increased 0.4% to 92.67. […] Factory orders in July increased 6.4% m/m (Briefing.com consensus 5.7%) following an upwardly revised 6.4% increase (from 6.2%) in June. This is the third straight monthly increase in factory orders following a 13.5% decline in April and an 11.0% decline in March. The key takeaway from the report is the affirmation that business spending picked up in July, evidenced by a 1.9% increase in new orders for nondefense capital goods excluding aircraft that was unchanged from the Advance Durable Goods Orders report. The ADP Employment Change Report for August showed a slowdown from the pace of rehiring activity seen in May and June. To that end, it was estimated that 428,000 jobs were added to private-sector payrolls. The weekly MBA Mortgage Applications Index declined 2.0% following a 6.5% decline in the prior week. […] Nasdaq Composite +34.4% YTD S&P 500 +10.8% YTD Dow Jones Industrial Average +2.0% YTD Russell 2000 -4.6% YTD ..NYSE Adv/Dec 1920/1014. ..NASDAQ Adv/Dec 1957/1353.