Directional Bias For The Day:

• S&P Futures are higher but NASDAQ futures are down; moving sideways since 6:00 PM on Tuesday
• The odds are for a sideways to an up day – watch for break below 3028.00
• Key economic data due:
  • Prelim GDP ( -5.0% vs. -4.8% est.; prev. -4.8%) at 8:30 AM
  • Durable Goods Orders ( -17.2% vs. -19.0% est.; prev. -14.7%) at 8:30 AM
  • Core Durable Goods Orders ( -7.4% vs. -14.8% est;; prev. -0.4%) at 8:30 AM
  • Unemployment Claims (2123K vs. 2100K est.; prev 2446K ) at 8:30 AM
  • Prelim GDP Price Index (1.4% vs. 1.3% est.; prev. 1.3%) at 8:30 AM
  • Pending Home Sales ( -21.8% vs. -15.0% est.; prev. -20.8%) at 8:30 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3017.11, 2996.27 and 2969.75
• Critical resistance levels for S&P 500 are 3040.16, 3049.84 and 3059.64
• Key levels for E-mini futures: break above 3049.75, the high of 9:00 AM and break below 3028.00, the low of 5:45 AM

Pre-Open

• On Wednesday at 4:00 PM, S&P futures (June 2020) closed at 3031.25 and the index closed at 3036.13 – a spread of about -5.00 points; futures closed at 3035.50 for the day; the fair value is -4.25
• Pre-NYSE session open, futures are mixed – at 9:00 AM, S&P 500 futures were up by +8.25; Dow up by +241 and NASDAQ down by -71.75

Markets Around The World

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

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

• Commodities:
  

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

• Bond
  • 10-yrs yield is at 0.693%, up from May 27 close of 0.680%;
  • 30-years is at 1.465%, up from 1.434%
  • 2-years yield is at 0.188% up from 0.184%
  • The 10-Year-&-2-Year spread is at 0.502 up from 0.496
• VIX
  • Is at 28.19; up +0.57 from May 26 close; at/below 5-day SMA;
  • Recent 39.28 on May 14; low 24.92 on March 3
  • Sentiment: Risk-Neutral

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

Previous Session

Major U.S. indices closed higher on Wednesday, May 27 in mostly higher volume. Dow Jones Transportation Average traded in lower volume. Indices traded down at the open and made the lows for the day in early morning trading before turning around and rising for rest of the day. All S&P sectors closed higher.

From Briefing.com:

The S&P 500 advanced 1.5% on Wednesday in a broad-based advance led by many of the value-oriented stocks. The Dow Jones Industrial Average (+2.2%) and Russell 2000 (+3.1%) outperformed the benchmark index, while the Nasdaq Composite increased 0.8%.

From a sector perspective, the S&P 500 financials (+4.3%) and industrials (+3.3%) sectors benefited the most from this value trade, which was based the speculation that these beaten-down cyclical groups will outperform in an economic recovery that is being priced in the stock market. The information technology sector (+0.5%) was today’s sector laggard.

[…]

U.S. Treasuries finished mixed and little changed. The 2-yr yield was unchanged at 0.17%, and the 10-yr yield declined two basis points to 0.68%. The U.S. Dollar Index increased 0.1% to 99.01. WTI crude declined 1.1% (-$0.38) to $33.98/bbl.

Wednesday’s economic data was limited to the weekly MBA Mortgage Applications Index, which increased 2.7% following a 2.6% decline in the prior week.