Directional Bias For The Day:

• S&P Futures are higher;
• The odds are for an up day with elevated volatility
• Futures are up nearly 20 points and there is great chance that the next move could be sideways from pre-open low levels
• Key economic data due:
  • Durable Goods ( 2.4% vs. 1.2% est. ; prev. -2.1% ) at 8:30 AM
  • Core Durable Goods (-0.1% vs. 0.4% est. ; prev. -0.1%) at 8:30 AM
  • S&P/CS Composite-20 HPI ( 2.6% vs. 2.5% est.; prev. 2.2% ) at 9:00 AM
  • CB Consumer Confidence ( est. 128.2 ; prev. 126.5 ) at 10:00 AM
  • Richmond Manufacturing Index ( est. -3; prev. -5) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3242.49, 3234.50 and 3232.43
• Critical resistance levels for S&P 500 are 3258.85, 3260.86 and 3277.19
• Key levels for eMini futures: break above 3263.50, the high of 2:00 AM and break below 3241.75, the low of 6:00 AM

Pre-Open

• On Monday, at 4:00 PM, S&P future (March 2020) closed at 3242.25 and the index closed at 3243.63 – a spread of about -1.50 points; futures closed at 3239.50 for the day; the fair value is +2.75
• Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +18.0; Dow by +123 and NASDAQ by +68.00

Markets Around The World

• Markets in the East were closed mostly lower – Shanghai and Hong Kong were closed for trading
• European markets are higher
• Currencies:
  

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

• Commodities:
  

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

• Bonds
  • 10-yrs yield is at 1.620%, up from January 27 close of 1.681%;
  • 30-years is at 2.071%, up from 2.182%
  • 2-years yield is at 1.431%, down from 1.433%
  • The 10-Year-&-2-Year spread is at 0.189 down from 0.192
• VIX
  • Is at 17.00 down -1.23 from January 27; above 5-day SMA
  • Next high resistance is 21.46, the high of October 2, 2019; the low support is the low was 11.72 on December 26

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

Previous Session

Major U.S. indices closed sharply lower on Monday, January 27 in mixed volume. Dow Jones Transportation Average and NASDAQ Composite traded in higher volume. All S&P sectors closed down.

Major indices gapped down at the open and did not close to closing the gap. However, most closed near the open and made doji like candles.

From Briefing.com:

The large-cap indices retreated more than 1.5% on Monday, as the continued outbreak of the coronavirus triggered more profit taking and some overdue selling. The S&P 500 lost 1.6%, the Dow Jones Industrial Average lost 1.6%, and the Nasdaq Composite lost 1.9%. The Russell 2000 declined 1.1%.

[…]

Treasuries. The 2-yr yield fell five basis points to 1.43%, and the 10-yr yield fell eight basis points to 1.61%. The U.S. Dollar Index increased 0.1% to 97.94.

[…]

• New home sales decreased 0.4% m/m in December to a seasonally adjusted annual rate of 694,000 units (Briefing.com consensus 725,000) from a downwardly revised 697,000 (from 719,000) in November.
o The key takeaway from the report is that new home sales were still strong on a year-over-year basis (+23.0%), benefiting from the drop in mortgage rates and the extremely tight supply of existing homes for sale.