Directional Bias For The Day:

• S&P Futures are higher at 9:00 AM. Moving up since 3:30 AM – up more than 20 points since then to before the NYSE open.
• The odds are for an up day – watch for a break below 4289.50 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 4290.73, 4286.83, and 4261.07
• Critical resistance levels for S&P 500 are 4312.23, 4325.28, and 4346.90
• The key levels for E-mini futures are 4315.00, the low on April 17, 2022, and 4289.50, the low at 6:00 AM

Pre-Open

• On Thursday at 4:00 PM, S&P futures (June 2023) closed at 4297.75, and the index closed at 4293.93 – a spread of about +3.75 points; the futures closed at 4298.25; the fair value is -0.50
• Pre-NYSE session open, futures were mixed – at 9:00 AM, S&P 500 futures were up by +2.25, Dow down by -63, and NASDAQ up by +42.75

Markets Around The World

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

• Commodities (Compared to two weeks ago):
  • Energy futures are mixed
  • Precious metals are higher
  • Industrial metals are mostly lower
  • Soft commodities are higher
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.745, down -6.9 basis points from two weeks ago;
  • The 30-year is at 3.899%, down -10.4 basis points;
  • The 2-year yield is at 4.546%, up +0.4 basis points;
  • The 10-Year-&-2-Year spread is at -0.801, down from -0.728
  • The 30-Year-&-10-Year spread is at 0.154, down from +0.189
• VIX
  • At 13.68 @ 8:30 AM; up from the last close; below the 5-day SMA;
  • Recent high = 20.81 on May 24; low = 13.53 on June 8
  • Sentiment: Risk-On

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

Previous Session

Major U.S. indices closed mostly higher on Thursday, June 8, in lower volume. Russell 2000 and Dow Jones Transportation Average closed down.

Most major indices are trying to break out of their past few day’s congestion areas. The two smaller cap indices – Russell and Transports – broke up on Wednesday and then mostly formed indecisive candles – Doji and Harami candles, respectively. All but four S&P sectors – Financials, Materials, Energy, and Real Estate – closed higher.

From Briefing.com:

[…] The Vanguard Mega Cap Growth ETF (MGK) rose 1.0%. The Invesco S&P 500 Equal Weight ETF (RSP), which had been down 0.6%, closed flat while the market-cap weighted S&P 500, which was flirting with the 4,300 level again today, rose 0.6% and finished near its highs of the day. Market breadth had been somewhat negative for most of the session, but advancers and decliners at the NYSE and Nasdaq settled on a nearly even basis. Most of the S&P 500 sectors closed with a gain while real estate (-0.7%) and energy (-0.5%) fell to the bottom of the pack. […] The consumer discretionary sector (+1.6%) closed atop the leaderboard for the 11 sectors, […] Other top performing sectors included the information technology (+1.1%) and consumer staples (+0.8%) sectors. […] Notably, the Russell 2000 (-0.4%) lagged today after outperforming so far this week, but it climbed back from an earlier 1.1% decline. Including today’s loss, it’s still the best performing index this week with a 2.7% gain. […] The 2-yr note yield fell three basis points to 4.52% and the 10-yr note yield fell seven basis points to 3.71%. […] Nasdaq Composite: +26.5% YTD S&P 500: +11.8% YTD Russell 2000: +6.8% YTD S&P Midcap 400: +5.2% YTD Dow Jones Industrial Average: +2.1% YTD […] Initial jobless claims for the week ending June 3 increased 28,000 to 261,000 (Briefing.com consensus 237,000) while continuing jobless claims for the week ending May 27 decreased 37,000 to 1.757 million. Initial claims, which are a leading indicator, hit their highest level since November 2021. The key takeaway from the report is the bump seen in initial claims as it connotes some softening in the labor market that the Fed will like to see, although claims levels continue to run well below levels seen in past recessions (i.e., north of 375,000), which is a point that market participants should be relatively pleased to know. Wholesale inventories fell 0.1% in April (Briefing.com consensus -0.2%) from a revised 0.2% decline in the prior reading (from 0.0%). The weekly EIA Natural Gas Inventories showed a build of 104 bcf versus a build of 96 bcf last week. […] Overseas: Europe: DAX +0.2%, FTSE -0.3%, CAC +0.3% Asia: Nikkei -0.9%, Hang Seng +0.3%, Shanghai +0.5% Commodities:  Crude Oil -1.24 @ 71.24 Nat Gas +0.01 @ 2.35 Gold +18.40 @ 1977.80 Silver +0.81 @ 24.35 Copper +0.04 @ 3.79