Directional Bias For The Day:

• S&P Futures are higher at 8:45 AM; moving up since 4:30 AM
• The odds are for an up day with elevated volatility; watch for a break below 4482.00 for a change of sentiments
• Key economic data report due during the day:
  • Final Manufacturing PMI ( 55.0 est.; prev. 55.0) at 9:45 AM
  • ISM Manufacturing PMI ( 57.4 est.; prev. 58.7 ) at 10:00 AM
  • JOLTS Job Openings (10.35M est.; 10.56M ) at 10:00 AM
  • Construction Spending (0.7% est.; prev. 0.4%) at 10:00 AM
  • ISm Manufacturing Prices ( 67.6 est.; prev. 68.2) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4491.76, 4471.46, and 4454.13
• Critical resistance levels for S&P 500 are 4530.20, 4552.62, 4579.96
• Key levels for E-mini futures: break above 4514.50, the high of 3:15 AM and break below 4482.00, the low of 4:45 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (March 2022) closed at 4501.75 and the index closed at 4515.55 – a spread of about -13.75 points; futures closed at 4504.25 for the day; the fair value is -2.50
• Pre-NYSE session open, futures are higher – at 8:45 AM, S&P 500 futures were up by +6.00; Dow by +35; and NASDAQ by +49.00

Markets Around The World

• Markets in the East closed higher – Shanghai, Hong Kong, Seoul, and Singapore were closed
• European markets are higher
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are lower
  • Industrial metals are mostly higher
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 1.766%, down -9.9 basis points from two weeks ago;
  • 30-years is at 2.098%, down -8.6 basis points;
  • 2-years yield is at 1.181%, up +13.4 basis points;
  • The 10-Year-&-2-Year spread is at 0.585, down from 0.818
  • The 30-Year-&-10-Year spread is at 0.332, up from 0.319
• VIX
  • At 24.44 @ 8:30 AM; down from the last close; below the 5-day SMA;
  • Recent high = 38.9 on January 24; low =  17.36 on January 12
  • Sentiment: Risk-On-Neutral

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

Previous Session

Major U.S. indices closed higher on Monday, January 31, in lower volume. The major indices opened up and then traded higher for most of the day closing near the highs. They are moving above a congestion area that they stayed in for the past few days.

From Briefing.com:

The S&P 500 rose 1.9% on Monday in a steady advance paced by the growth stocks. The Nasdaq Composite (+3.4%) and Russell 2000 (+3.1%) outperformed with gains over 3.0%, while the Dow Jones Industrial Average underperformed on a relative basis with a 1.2% gain. […] All 11 S&P 500 sectors closed in positive territory amid another strong finish. The consumer discretionary (+3.8%), information technology (+2.7%), and communication services (+2.4%) sectors, which contain the mega-caps, finished atop the standings while the energy sector increased just 0.4%. […] The 2-yr yield decreased one basis point to 1.16%, and the 10-yr yield was unchanged at 1.78%. The U.S. Dollar Index pulled back 0.7% to 96.63. WTI crude futures settled above $88 per barrel ($88.16, +1.42, +1.6%). […] Dow Jones Industrial Average -3.3% YTD S&P 500 -5.3% YTD Nasdaq Composite -9.0% YTD Russell 2000 -9.7% YTD Overseas:  Europe: DAX +1.0%, FTSE flat, CAC +0.5% Asia: Nikkei +1.1%, Hang Seng +1.1%, Shanghai closed for holiday Commodities:  Crude Oil +1.24 @ 88.07 Nat Gas +0.22 @ 4.90 Gold +13.80 @ 1799.30 Silver +0.22 @ 22.46 Copper +0.03 @ 4.33