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:

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:

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.