Directional Bias For The Day:

• S&P Futures are higher; 9/11 has been historically bullish since 2002;
• The odds are for an up to sideways day with elevated volatility – watch for a break below 3327.25 for change of sentiment
• Key economic data due:
  • Core CPI ( 0.4% vs 0.2% est.; prev.0.6%) at 8:30 AM
  • CPI ( 0.4% vs. 0.3% est.; prev. 0.6%) at 8:30 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3329.25, 3317.37, and 3295.34
• Critical resistance levels for S&P 500 are 3362.00, 3395.42, and 3407.86
• Key levels for E-mini futures: break above 3375.00, the high of 5:30 PM and break below 3327.25, the low of 3:15 PM on September 9

Pre-Open

• On Thursday at 4:00 PM, S&P futures (September 2020) closed at 3338.00 and the index closed at 3339.19 – a spread of about -1.025 points; futures closed at 3340.50 for the day; the fair value is -2.50
• Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +8.25; Dow by +9, and NASDAQ by +48.25

Markets Around The World

• Markets in the East closed mostly higher – Sydney and Seoul closed down
• European markets are mixed – U.K., Switzerland, and STOXX-600 are higher; Germany, France, Spain, and Italy are lower;
• Currencies:
  

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

• Commodities:
  

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

• Bond
  • 10-years yield is at 0.676%, down from September 10 close of 0.685%;
  • 30-years is at 1.415% down from 1.434%
  • 2-years yield is at 0.133% down from 0.141%
  • The 10-Year-&-2-Year spread is at 0.538 down  from 0.544
• VIX
  • Is at 28.42; down -1.29 from September 10 close; below 5-day SMA;
  • Recent high =  37.12 on June 14; low =  20.28 on August 11
  • Sentiment: Risk-Neutral to On

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

Previous Session

Major U.S. indices closed lower on Thursday, September 10 in mixed volume after one day bounce following a three-day decline. NASDAQ Composite and Russell 2000 traded in higher volume. Indices started the day with a higher open and made day’s highs in the first hour of trading. After that, they mostly traded down for rest of the day. All S&P sectors closed lower.

From Briefing.com:

The S&P 500 fell 1.8% on Thursday in a broad-based retreat led by shares of technology and energy companies. The Nasdaq Composite declined 2.0%, the Dow Jones Industrial Average declined 1.5%, and the Russell 2000 declined 1.2%. The day started with the S&P 500 up 0.8%, and briefly surpassing yesterday’s intraday high, on the back of leadership from the mega-caps and growth stocks. […] All 11 S&P 500 sectors finished in red, and 29 of the 30 Dow components finished lower. The information technology (-2.3%) and energy (-3.7%) sectors declined more than the S&P 500, while the materials sector (-0.9%) was a relative outperformer. At one point today, the influential tech sector was up 2.6%. […] The 2-yr yield increased one basis point to 0.14%, while the 10-yr yield decreased two basis points to 0.69%. The U.S. Dollar Index advanced 0.2% to 93.41. WTI crude futures fell 2.1%, or $0.78, to $37.27/bbl. […] Initial claims for the week ending September 5 were unchanged at 884,000 (Briefing.com consensus 813,000). Continuing claims for the week ending August 29 increased by 93,000 to 13.385 million. The key takeaway from the report is that there is nothing worth celebrating about initial claims being under one million when they are just barely under 900,000 nearly six months following the shock of the COVID shutdown phase in March. In the same week a year ago, initial claims were 208,000. The Producer Price Index for final demand increased 0.3% m/m in August, as expected. The index for final demand, excluding food and energy, increased 0.4% m/m (Briefing.com consensus +0.2%). That left the yr/yr changes at -0.2% and 0.6%, respectively. The key takeaway from the report is that the soft year-over-year readings will overshadow the stronger month-over-month readings, because the year-over-year numbers play into the Fed’s view that it isn’t even thinking about thinking about thinking about raising rates. Wholesale inventories decreased 0.3% in July (Briefing.com consensus -0.1%), versus a prior decline of 1.3% in June. […] Nasdaq Composite +21.7% YTD S&P 500 +3.4% YTD Dow Jones Industrial Average -3.5% YTD Russell 2000 -9.6% YTD ..NYSE Adv/Dec 966/1949. ..NASDAQ Adv/Dec 1097/2071.