Directional Bias For The Day:

• S&P Futures are lower at 8:45 AM; a sharp  decline of more than 60 points following the CPI report at 8:30 AM
• The odds are for a down day with elevated volatility – watch for a break above 4027.00 for a change of sentimentsclarity
• The key economic data report is due during the day
  • CPI (0.3% vs. 0.2% est.; prev. 1.2%) at 8:30 AM
  • Core CPI ( 0.6% vs. 0.4% est.; prev. 0.3%) at 8:30 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3958.17, 3948.77, and 3943.35
• Critical resistance levels for S&P 500 are 4036.00, 4041.03, and 4068.82
• Key levels for E-mini futures: break above 4027.00, the high at 8:30 AM and a break below 3953.00, the low at 12:30 PM on Tuesday

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (June 2022) closed at 3995.00 and the index closed at 4001.05 – a spread of about -6.00 points; futures closed at 3996.75 for the day; the fair value is -1.75
• Pre-NYSE session open, futures are lower – at 8:30 AM, S&P 500 futures were down by -8.00; Dow by -11; and NASDAQ by -66.75

Markets Around The World

• Markets in the East closed mixed – Shanghai, Hong Kong, Tokyo, and Sydney closed higher; Mumbai, Seoul, and Singapore closed lower
• European markets are mostly higher – Switzerland is lower
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are mixed
  • Precious metals are lower
  • Industrial metals are mostly lower
  • Soft commodities are mostly lower
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 2.993%, up +22.1 basis points from two weeks ago;
  • 30-years is at 3.130%, up +26.1 basis points;
  • 2-years yield is at 2.630%, up +13.0 basis points;
  • The 10-Year-&-2-Year spread is at 0.363, up from 0.272
  • The 30-Year-&-10-Year spread is at 0.137, up from 0.097
• VIX
  • At 32.12 @ 6:45 AM; down from the last close; at/below the 5-day SMA;
  • Recent high = 35.48 on May 9; low = 24.94 on May 4
  • Sentiment: Risk-Neutral-On

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

Previous Session

Major U.S. indices closed mixed on Tuesday, May 10, in mostly lower volume. S&P 500, NASDAQ Composite, and Wilshire 5000 Total Market Index closed higher. NASDAQ Composite traded in higher volume.

The major indices opened higher but then turned down in the first hour of trading and declined to below the previous day’s close. They again turned up in the afternoon trading before retreating in the last hour of trading. Most made spinning top candles with varying sizes of real bodies.

From Briefing.com:

The S&P 500 increased 0.3% on Tuesday in a volatile session in which the large growth stocks did the heavy lifting. The Nasdaq Composite pulled ahead with a 1.0% gain, representing the mega-cap outperformance, while the Dow Jones Industrial Average (-0.3%) and Russell 2000 (-0.02%) closed slightly lower. […] The mega-caps propped up the S&P 500 information technology (+1.6%) and communication services (+0.8%) sectors to the top of the standings, joined by the energy sector (+0.9%). Conversely, the real estate (-2.3%), utilities (-1.2%), and financials (-0.8%) sectors were the worst performers. […] WTI crude futures settled just above $100.00 per barrel ($100.02, -3.41, -3.3%). The U.S. Dollar Index increased 0.2% to 103.90. Tuesday’s economic data was limited to NFIB Small Business Optimism, which was unchanged at 93.2 in April. […] Dow Jones Industrial Average -11.5% YTD S&P 500 -16.1% YTD Russell 2000 -21.5% YTD Nasdaq Composite -25.0% YTD Overseas:  Europe: DAX +1.2%, FTSE +0.4%, CAC +0.5% Asia: Nikkei -0.6%, Hang Seng -1.8%, Shanghai +1.1% Commodities:  Crude Oil -3.41 @ 100.02 Nat Gas +0.34 @ 7.44 Gold -10.90 @ 1843.50 Silver -0.27 @ 21.46 Copper -0.01 @ 4.16