Directional Bias For The Day:

• S&P Futures are higher at 9:00 AM; the futures are moving sideways to down since 3:30 AM around 4140.00
• The odds are for a sideways to down day with volatility – watch for a break above 4157.00 and a break below 4118.00 for clarity
• The key economic data report due during the day:
  • Flash Services PMI ( 49.8 est.; prev. 47.3) at 9:45 AM
  • Flash Manufacturing PMI ( 51.8 est.; prev. 52.2 ) at 9:45 AM
  • New Home Sales ( 574K est.; prev. 590K) at 10:00 AM
  • Richmond Manufacturing PMI ( -3 est.; prev. 0) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4129.86, 4112.21, and 4090.24
• Critical resistance levels for S&P 500 are 4149.39, 4163.10, and 4195.08
• Key levels for E-mini futures: break above 4157.00, the high at 4:00 AM and a break below 4118.00, the low at 2:30 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (September 2022) closed at 4142.75, and the index closed at 4137.99 – a spread of about +4.75 points; the futures closed at 4141.25; the fair value is +1.50
• Pre-NYSE session open, futures are higher – at 7:00 AM, S&P 500 futures were up by +6.00, Dow by +34; and NASDAQ by +18.00

Markets Around The World

• Markets in the East closed mostly lower – Mumbai closed up
• European markets are mostly lower – Germany and Italy are up
• Currencies (Compared to two weeks ago):

• Commodities (Compared to two weeks ago):
  • Energy futures are mixed
  • Precious metals are lower
  • Industrial metals are mostly lower
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.037%, up +27.2 basis points from two weeks ago;
  • The 30-year is at 3.242%, up +24.4 basis points;
  • The 2-year yield is at 3.314%, up +10.9 basis points;
  • The 10-Year-&-2-Year spread is at -0.277, up from -0.440
  • The 30-Year-&-10-Year spread is at 0.205, up from 0.233
• VIX
  • At 23.55 @ 6:30 AM; down from the last close; above the 5-day SMA;
  • Recent high = 24.68 on August 2; low = 19.12 on August 12
  • Sentiment: Risk-On-Neutral

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

Previous Session

Major U.S. indices closed lower on Monday, August 22, in mixed volume. NASDAQ Composite and Russell 2000 traded in lower volume.

The major indices gapped down at the open and then mostly drifted lower for the rest of the day. All S&P sectors closed lower.

From Briefing.com:

[…] The 10-yr note yield rose five basis points to 3.04% while the 2-yr note yield rose eight basis points to 3.33%. The selling was broad-based, leaving many stocks lower, but mega caps and growth stocks were notably weak. The Vanguard Mega Cap Growth ETF (MGK) closed down 2.6% versus a 2.1% loss in the Invesco S&P 500 Equal Weight ETF (RSP) and the S&P 500. The Russell 3000 Growth Index (-2.4%) closed behind the Russell 3000 Value Index (-2.0%). […] Every sector closed with losses ranging from 0.3% (energy) to 2.8% (consumer discretionary). Consumer discretionary (-2.8%), information technology (-2.8%), and communication services (-2.7%), home to key mega cap names, brought up the rear. […] WTI crude oil futures settled 0.2% lower at $90.63/bbl after dipping below $87.00/bbl earlier in the session. […] Dow Jones Industrial Average: -9.0% YTD S&P 400: -11.3% YTD S&P 500: -13.2% YTD Russell 2000: -14.7% YTD Nasdaq Composite: -20.9% YTD Overseas:  Europe: DAX -2.3%, FTSE -0.2%, CAC -1.8% Asia: Nikkei -0.5%, Hang Seng -0.6%, Shanghai +0.6% Commodities:  Crude Oil +0.15 @ 90.63 Nat Gas +0.40 @ 9.74 Gold -12.90 @ 1750.10 Silver -0.17 @ 18.89 Copper -0.01 @ 3.65