Directional Bias For The Day:

• S&P Futures are higher at 8:45 AM; up more than 30 points since 2:00 AM in the up-down move;
• The odds are for an up day with elevated volatility – watch for a break below 3968.00 for a change of sentiments
• The key economic data report due during the day:
  • Prelim GDP ( -1.5% vs. -1.3%; prev. -1.4% ) at 8:30 AM
  • Unemployment Claims ( 210K vs. 217K est.; prev. 218K) at 8:30 AM
  • Prelim GDP Prices ( -1.0%; prev. -0.4% ) at 8:30 AM
  • Pending Home Sales (-3.9% vs. 1.9% est.; prev. -1.6%) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3970.01, 3932.32, and 3892.83
• Critical resistance levels for S&P 500 are 3999.33, 4026.75, and 4051.98
• Key levels for E-mini futures: break above 4009.00, the high at 7:30 AM and a break below 3968.00, the low at 4:45 AM

Pre-Open

• On Wednesday at 4:00 PM, S&P futures (June 2022) closed at 3979.00 and the index closed at 3978.73 – a spread of about +0.25 points; futures closed at 3976.75 for the day; the fair value is +2.25
• Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +25.25; Dow by +219; and NASDAQ by +44.00

Markets Around The World

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

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are mixed
  • Industrial metals are mostly lower
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 2.736%, down -18.5 basis points from two weeks ago;
  • 30-years is at 2.982%, down -6.2 basis points;
  • 2-years yield is at 2.296%, down -12.7 basis points;
  • The 10-Year-&-2-Year spread is at 0.240, down from 0.298
  • The 30-Year-&-10-Year spread is at 0.246, up from 0.123
• VIX
  • At 28.33 @ 6:30 AM; down from the last close; below the 5-day SMA;
  • Recent high = 35.48 on May 9; low = 25.51 on May 17
  • Sentiment: Risk-On
  • Forming a symmetrical triangle since April 25

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

Previous Session

Major U.S. indices closed higher on Wednesday, May 25, in mixed volume. S&P 500 and Russell 2000 Traded in higher volume.

Major indices opened higher and then moved further up in the morning trade before declining in the early afternoon. They again moved after in the late afternoon and closed near the highs for the day.

From Briefing.com:

[…] The Russell 2000 increased 2.0% and the S&P Midcap 400 Index increased 1.9% versus gains of 1.0% for the S&P 500 and 0.6% for the Dow Jones Industrial Average. […] That interest was evident in the advance-decline line, which favored advancing issues by a nearly 4-to-1 margin at the NYSE and a better than 2-to-1 margin at the Nasdaq. […] Most sectors ended today higher. The lone laggards were the utilities (-0.06%) and industrials (-0.02%) sectors. The energy (+2.0%) and information technology (+1.2%) sectors fell in line behind the consumer discretionary sector as the best-performing sectors. Gains for the remaining sectors ranged from 0.04% to 0.9%. […] The conditions for durable goods orders proved to be reasonably good in April, if not altogether as strong as expected. New orders for durable goods increased 0.4% month-over-month (Briefing.com consensus 0.6%) while new orders for durable goods, excluding transportation, rose 0.3% month-over-month (Briefing.com consensus 0.6%). […] Total applications declined 1.2% week-over-week, with purchase applications flat and refinancing applications down 2.0% […] Dow Jones Industrial Average -11.5% YTD S&P 500 -16.5% YTD S&P 400 -14.6% YTD Russell 2000 -19.9% YTD Nasdaq Composite -26.9% YTD Overseas:  Europe: DAX +0.6%, FTSE +0.5%, CAC +0.7% Asia: Nikkei -0.3%, Hang Seng +0.3%, Shanghai % Commodities:  Crude Oil +0.66 @ 110.60 Nat Gas +0.07 @ 8.91 Gold -19.10 @ 1845.60 Silver -0.19 @ 21.87 Copper -0.04 @ 4.26