Directional Bias For The Day:

• S&P Futures are higher at 8:45 AM, broke above a Horizontal Channel at 8:00 AM – the 61.8% extension target near 3983.96 is achieved, and the 100% extension target is near 3992.75;
• The odds are for an up day with elevated volatility – watch for a break below 3964.75 and 3956.50 for clarity;
• The key economic data report is due during the day:
  • Richmond Manufacturing Index ( -9 est.; prev -10) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3960.36, 3945.24, and 3933.34
• Critical resistance levels for S&P 500 are 3974.87, 3979.89 and 3983.09
• Key levels for E-mini futures: break above 3975.75, the high at 8:15 AM, and a break below 3964.75, the low of 7:15 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (December 2022) closed at 3958.00, and the index closed at 3949.94 – a spread of about +8.00 points; the futures closed at 3958.00; the fair value is +0.00
• Pre-NYSE session open, futures are higher – at 8:30 AM, S&P 500 futures were up by +13.75, Dow by +115, and NASDAQ by +28.75

Markets Around The World

• Markets in the East closed mostly higher – Hong Kong and Seoul closed lower
• European markets are mostly higher – Switzerland is lower
• Currencies (Compared to two weeks ago):

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • Precious metals are mixed
  • Industrial metals are lower
  • Soft commodities are mostly lower
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.810%, down -40.4 basis points from two weeks ago;
  • The 30-year is at 3.895%, down -41.8 basis points;
  • The 2-year yield is at 4.521%, down -18.4 basis points;
  • The 10-Year-&-2-Year spread is at -0.711, down from -0.491
  • The 30-Year-&-10-Year spread is at 0.085, up from 0.099
• VIX
  • At 22.26 @ 8:00 AM; down from the last close; below the 5-day SMA;
  • Recent high = 26.59 on November 10; low = 22.37 on November 11
  • Sentiment: Risk-On

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

Previous Session

Major U.S. indices closed mostly lower on Monday, November 21, in mixed volume. Dow Jones Transportation Average closed higher in higher volume. Dow Jones Industrial Average also traded in higher volume.

The day’s price action was subdued and mostly sideways after the initial decline. The equities have mostly moved sideways to down over the past few days.

From Briefing.com:

[…] The stock market kicked off this holiday-shortened week on a softer note. The major indices were able to recover from heavier losses, but still closed in negative territory. […] Mega cap stocks and semiconductor names were among today’s biggest laggards. The PHLX Semiconductor closed down 1.8% and the Vanguard Mega Cap Growth ETF (MGK) closed down 1.1% while the S&P 500 sported a more modest 0.4% loss. […] Four of the 11 S&P 500 sectors closed in the red. Consumer discretionary (-1.4%) and energy (-1.4%) showed the steepest losses while consumer staples (+1.0%) and real estate (+0.7%) led the outperformers. […] Dow Jones Industrial Average: -7.3% YTD S&P Midcap 400: -11.9% YTD Russell 2000: -18.1% YTD S&P 500: -17.1% YTD Nasdaq Composite: -29.5% YTD Overseas:  Europe: DAX -0.4%, FTSE -0.1%, CAC -0.2% Asia: Nikkei +0.2%, Hang Seng -1.9%, Shanghai -0.4% Commodities:  Crude Oil -0.01 @ 80.12 Nat Gas +0.46 @ 7.22 Gold -10.40 @ 1739.70 Silver -0.07 @ 20.82 Copper -0.06 @ 3.57