Directional Bias For The Day:

• S&P Futures are higher at 9:00 AM; futures drifting higher since 2:15 AM and nearing a resistance zone for the index at around 3958.00
• The odds are for an up day with elevated volatility – watch for a break below 3942.25 for a change of sentiments
• No major economic data report is due during the day:

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3919.83, 3901.89, and 3886.56
• Critical resistance levels for S&P 500 are 3933.04, 3958.37, and 3958.37
• The key levels for E-mini futures are a break above 3956.25, the high at 1:30 PM on Monday, and a break below 3942.25, the low at 7:15 PM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (March 2023) closed at 3941.75, and the index closed at 3919.25 – a spread of about +22.50 points; the futures closed at 3940.750; the fair value is +1.00
• Pre-NYSE session open, futures are higher – at 8:45 AM, S&P 500 futures were up +13.75, Dow by +100, and NASDAQ by +34.50

Markets Around The World

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

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • Precious metals are mixed
  • Industrial metals are mixed
  • Soft commodities are mostly lower
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.572, down -28.8 basis points from two weeks ago;
  • The 30-year is at 3.696%, down -24.8 basis points;
  • The 2-year yield is at 4.262%, down -14.2 basis points;
  • The 10-Year-&-2-Year spread is at -0.690, down from -0.544
  • The 30-Year-&-10-Year spread is at 0.124, up from 0.084
• VIX
  • At 20.72 @ 8:15 AM; up from the last close; below the 5-day SMA;
  • Recent high = 24.30 on December 22; low = 19.94 on December 21
  • Sentiment: Risk-On

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

Previous Session

Major U.S. indices closed higher on Tuesday, January 10, in lower volume. Most major indices made small Bullish Engulfing or similar candles. The indices open lower and, after an initial hesitation for the first hour or so, moved higher. All but one S&P sector – Consumer Staples – closed higher.

From Briefing.com:

The stock market traded in mixed fashion to begin today’s session after yesterday’s rally fizzled out late in the afternoon trade. The major indices spent the first half of the day floating around their flat lines due to a lack of conviction from either buyers or sellers. […] Buyers exhibited more commitment, though, starting around midday. By the closing bell, advancing issues led declining issues by a roughly 5-to-2 margin at both the NYSE and the Nasdaq. The main indices closed near their best levels of the day, which left the S&P 500 comfortably above a key technical point (its 50-day moving average at 3,907). […] Ten of the 11 S&P 500 sectors closed in the green led by the communication services (+1.3%) and consumer discretionary (+1.3%) sectors. Meanwhile, the consumer staples sector (-0.2%) was alone in negative territory to close out the session. […] Treasury yields rose noticeably today. The 2-yr note yield rose six basis points to 4.26% and the 10-yr note yield rose ten basis points to 3.62%. […] December NFIB Small Business Optimism 89.8; Prior 91.9 November Wholesale Inventories 1.0%; Prior was revised to 0.6% from 0.5% S&P Midcap 400: ++3.5% YTD Russell 2000: +3.5% YTD Nasdaq Composite: +2.6% YTD S&P 500: +2.1%YTD Dow Jones Industrial Average: +1.7% YTD […] Overseas:  Europe: DAX -0.1%, FTSE -0.4%, CAC -0.6% Asia: Nikkei +0.8%, Hang Seng -0.3%, Shanghai -0.2% Commodities:  Crude Oil +0.55 @ 75.19 Nat Gas -0.24 @ 3.32 Gold -1.00 @ 1877.10 Silver -0.22 @ 23.66 Copper +0.05 @ 4.07 […]