Directional Bias For The Day:

• S&P Futures are higher 8:45 AM; advanced more than 50 points since 12:45 AM
• The odds are for an up day with elevated volatility; watch for a break below 4484.25v and 4467.00 for a change of fortunes
• Key economic data report due during the day:
  • Prelim UoM Consumer Sentiments ( 67.2 est.; prev. 67.2) at 10:00 AM
  • Prelim UoM Inflation Expectations ( prev. 4.9%) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4484.31, 4465.40, and 4451.50
• Critical resistance levels for S&P 500 are 4510.74, 4529.94, and 4554.18
• Key levels for E-mini futures: break above 4504.00, the high of 3:45 PM and break below 4467.00, the low of 4:45 AM

Pre-Open

• On Thursday at 4:00 PM, S&P futures (March 2022) closed at 4498.00 and the index closed at 4504.08 – a spread of about -6.00 points; futures closed at 4497.50 for the day; the fair value is +0.50
• Pre-NYSE session open, futures are higher – at 8:45 AM, S&P 500 futures were up by +6.50; Dow by +41; and NASDAQ by +29.75

Markets Around The World

• Markets in the East closed lower – Tokyo was closed
• European markets are lower
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are mixed
  • Precious metals are higher
  • Industrial metals are mostly higher
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 2.031%, up +22.4 basis points from two weeks ago;
  • 30-years is at 2.309%, up +21.8 basis points;
  • 2-years yield is at 1.587%, up +39.6 basis points;
  • The 10-Year-&-2-Year spread is at 0.444, down from 0.616
  • The 30-Year-&-10-Year spread is at 0.278, down from 0.284
• VIX
  • At 24.91 @ 7:00 AM; up from the last close; above the 5-day SMA;
  • Recent high = 26.26 on February 4; low = 19.93 on February 9
  • Sentiment: Risk-Off-Neutral

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

Previous Session

Major U.S. indices closed lower on Thursday, February 10, in mostly higher volume. Dow Jones Transportation Average traded in lower volume. The indices gapped down at the open then rose and almost reached the previous day’s high by 10:30 AM before turning around and declining for the rest of the day and closing near the lows.

From Briefing.com:

The S&P 500 fell 1.8% on Thursday, as rate-hike angst was fueled by the Consumer Price Index (CPI) for January and by comments from St. Louis Fed President Bullard (FOMC voter). The Nasdaq Composite (-2.1%), Dow Jones Industrial Average (-1.5%), and Russell 2000 (-1.6%) also suffered steep losses. All 11 S&P 500 sectors closed lower with eight sectors losing at least 1.0%. The information technology (-2.8%) and real estate (-2.9%) sectors led the retreat, while the materials (-0.6%) and energy (-0.7%) sectors posted modest declines. Energy stocks received offsetting support from elevated oil prices ($89.84, +0.19, +0.2%). [..] The 10-yr yield cracked above 2.00% and settled at 2.04%, or ten basis points above yesterday’s settlement. The 2-yr yield spiked 22 basis points to 1.56%. The U.S. Dollar Index gained 0.2% to 95.69. […] Total CPI increased 0.6% month-over-month in January (Briefing.com consensus +0.5%) on the heels of an upwardly revised 0.6% (from 0.5%) for December. Core CPI, which excludes food and energy, was also up 0.6% month-over-month (Briefing.com consensus +0.5%) after increasing 0.6% in December. On a year-over-year basis, total CPI is up 7.5% — the highest since February 1982 — and core CPI is up 6.0% — the highest since August 1982 […] . Initial jobless claims for the week ending February 5 decreased by 16,000 to 223,000 (Briefing.com consensus 234,000) while continuing claims for the week ending January 29 held steady at 1.621 million. […] Dow Jones Industrial Average -3.0% YTD S&P 500 -5.5% YTD Russell 2000 -8.7% YTD Nasdaq Composite -9.3% YTD Overseas:  Europe: DAX +0.1%, FTSE +0.4%, CAC -0.4% Asia: Nikkei +0.4%, Hang Seng +0.4%, Shanghai +0.2% Commodities:  Crude Oil +0.28 @ 89.76 Nat Gas -0.03 @ 3.96 Gold +2.40 @ 1836.00 Silver +0.18 @ 23.45 Copper +0.16 @ 4.64