Directional Bias For The Day:

• S&P Futures are higher
• The odds are for up day; good chance of moving sideways to down from pre-open levels around 3015.00; elevated volatility – watch for break below 3004.00
• Key economic data due:
  • HPI ( 0.1% vs. 0.6% est.; prev. 0.8%) at 9:00 AM
  • S&P/CS Composite-20 HPI (3.9% vs. 3.4% est.; prev. 3.5%) at 9:00 AM
  • CB Consumer Confidence ( 87.1 est.; prev. 86.9) at 10:00 AM
  • New Home Sales (492K est.; prev. 627K) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 2980.29, 2978.50 and 2959.64
• Critical resistance levels for S&P 500 are 3030.09, 3059.64 and 3080.95
• Key levels for E-mini futures: break above 3019.25, the high of 9:00 AM and break below 3004.00, the low of 8:00 AM

Pre-Open

• On Friday at 4:00 PM, S&P futures (June 2020) closed at 2950.25 and the index closed at 2955.45 – a spread of about -5.25 points; futures closed at 2953.00 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 +54.50; Dow by +514 and NASDAQ by +151.75

Markets Around The World

• Markets in the East closed mostly up – Mumbai was down
• European markets are higher
• Currencies:
  

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

• Commodities:
  

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

• Bond
  • 10-yrs yield is at 0.695%, up from May 22 close of 0.657%;
  • 30-years is at 1.423%, up from 1.371%
  • 2-years yield is at 0.198% up from 0.173%
  • The 10-Year-&-2-Year spread is at 0.499 up from 0.484
• VIX
  • Is at 27.50; down -0.66 from May 22 close; below 5-day SMA;
  • Recent 39.28 on May 14; low 24.92 on March 3
  • Sentiment: Risk-On

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

Previous Session

Major U.S. indices closed mostly higher on Friday, May 22 in lower volume. Dow Jones Industrial Average and NYSE Composite closed down. The day’s range was small.

For the week, major U.S. indices closed up in mostly lower volumes. Dow Jones Transportation Average traded in lower volume. All S&P 500 sectors but Healthcare closed up for the week. Asian markets were mixed and Europe was up. Crude oil was up and gold was down. Dollar and Yen declined but Treasury yields rose.

From Briefing.com:

The major indices closed near session highs on Friday, preserving their weekly gains in front of the Memorial Day weekend. The S&P 500 increased 0.2%, the Nasdaq Composite increased 0.4%, and the Russell 2000 increased 0.6%. The Dow Jones Industrial Average (-0.04%) finished just below its flat line.

From a sector perspective, investors leaned defensively, evident by the positive performances from the S&P 500 real estate (+2.2%), utilities (+1.1%), and consumer staples (+0.3%) sectors. The information technology (+0.4%) and communication services (+0.5%) sectors also closed higher.

[…]

The price action was relatively muted throughout the day, with the broader market barely reacting to positive or negative news. The S&P 500 traded lower for most of the day, so the positive finish was good to see for the bulls.

[…]

U.S. Treasuries closed mixed. The 2-yr yield increased two basis points to 0.17%, while the 10-yr yield decreased two basis points to 0.66%. The U.S. Dollar Index increased 0.4% to 99.77.