Directional Bias For The Day:

• S&P Futures are lower
• The odds are for a sideways to down day with elevated volatility; – watch for break above 3126,00 for change of sentiments
• Key economic data due:
  • HPI ( 0.3% est.; prev. 0.1%) at 9:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3120.87, 3104.09 and 3089.81
• Critical resistance levels for S&P 500 are 3127.12, 314116 and 3154.90
• Key levels for E-mini futures: break above 3126.00, the high of 12:30 AM and break below 3081.00, the low of 5:00 AM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (September 2020) closed at 3119.75 and the index closed at 3131.29 – a spread of about -11.50 points; futures closed at 3118.50 for the day; the fair value is +1.25
• Pre-NYSE session open, futures are lower – at 8:00 AM, S&P 500 futures were down by -22.00; Dow by -224 and NASDAQ by -28.50

Markets Around The World

• Markets in East closed mixed – Shanghai, Sydney and Seoul closed up
• European markets are lower
• Currencies:
  

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

• Commodities:
  

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

• Bond
  • 10-yrs yield closed at 0.709%, up from June 22 close of 0.704;
  • 30-years is at 1.489% up from 1.461%
  • 2-years yield is at 0.199% up from 0.193%
  • The 10-Year-&-2-Year spread is at 0.516 up from 0.514
• VIX
  • Is at 33.14; up +1.77 from June 23 close; above 5-day SMA;
  • Recent high 44.44 on June 15; low 23.54 on June 5
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed higher on Tuesday, June 23 in mixed volume. S&P 500 and Russell 2000 traded in lower volume. Indices opened higher and made highs for the day in the morning session before declining in the afternoon session. NASDAQ Composite made all time high. All but four S&P sectors – Consumer Staples, Utilities, Real Estate and Telecom – closed higher.

From Briefing.com:

The S&P 500 gained 0.4% on Tuesday amid more indications of an economic recovery, while the Nasdaq Composite (+0.7%) pulled ahead to close at another record high for its eighth straight advance. The Dow Jones Industrial Average (+0.5%) and Russell 2000 (+0.4%) also posted modest gains, but the market did close near session lows. […] Elsewhere, U.S. Treasuries finished near their flat lines in another lackluster session in the bond market, while gold futures rose 0.9% to $1782.00/ozt. The 2-yr yield was unchanged at 0.19%, and the 10-yr yield increased one basis point to 0.71%. The U.S. Dollar Index declined 0.3% to 96.72. WTI crude declined 0.5% to $40.38/bbl. […] New home sales increased sharply in May, rising 16.6% m/m to a seasonally adjusted annual rate of 676,000 (Briefing.com consensus 635,000). The increase came on the heels of a sharp downward revision for April to 580,000 from 623,000. The key takeaway from the report is that sales activity bounced back smartly in May, reflecting a welcome pickup in contract signings as COVID-19 shutdown pressures lessened. This understanding should foster expectations that sales activity will continue to improve in coming months given the tight supply of existing homes for sale, low mortgage rates, and pent-up demand.