Directional Bias For The Day:

• S&P Futures are higher;
• The odds are for an up day with a good chance of sideways to down move from pre-open levels near 3440.00 – watch for a break below 3425.00 for change of sentiments
• Key economic data due:
  • HPI ( 0.3% est.; prev. -0.3%) at 9:00 AM
  • S&P/CS Composite-20 HPI (3.6% est.; prev. 3.7%) at 9:00 AM
  • CB Consumer Confidence ( 93.0 est.; prev. 92.6) at 10:00 AM
  • New Home Sales ( 787K est.; prev. 776K) at 10:00 AM
  • Richmond Manufacturing Index ( 10 est.; prev. 10) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3432.09, 3414.02, and 3399.43
• Critical resistance levels for S&P 500 are 4437.87, 3444.46, and 3456.83
• Key levels for E-mini futures: break above 3448.75, the high of 3:00 AM and break below 3425.00, the low of 4:30 PM on Monday

Pre-Open

• On Monday at 4:00 PM, S&P futures (September 2020) closed at 3428.50 and the index closed at 3431.28 – a spread of about -2.75 points; futures closed at 3427.50 for the day; the fair value is +1.00
• Pre-NYSE session open, futures are mixed – at 8:15 AM, S&P 500 futures were up by +12.00; Dow up by +159 and NASDAQ down by -26.00

Markets Around The World

• Markets in East closed mostly higher – Shangai and Hong Kong closed lower
• European markets are higher
• Currencies:
  

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

• Commodities:
  

  Up	Down
  Crude Oil NatGas Platinum Palladium Coffee Cotton Cocoa	Gold Silver Copper Sugar

• Bond
  • 10-yrs yield closed at 0.646%, up from August 21 close of 0.640%;
  • 30-years is at 1.350% down from 1.353%
  • 2-years yield is at 0.154% down from 0.169%
  • The 10-Year-&-2-Year spread is at 0.492 up from 0.471
• VIX
  • Is at 22.35; down -0.02 from August 24 close; below 5-day SMA;
  • Recent high 33.67 on July 14; low 20.28 on August 11
  • Sentiment: Risk-On

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

Previous Session

Major U.S. indices closed higher on Monday, August 24 in mostly higher volume. S&P 500 and Russell 2000 traded in lower volume. Indices are breaking above recent resistance levels. All S&P sectors except Healthcare closed higher.

From Briefing.com:

The S&P 500 (+1.0%) and Nasdaq Composite (+0.6%) rose to new record highs on Monday, as sentiment was boosted by news the FDA approved emergency use authorization for convalescent plasma in hospitalized COVID-19 patients. The Dow Jones Industrial Average gained 1.4%, and the Russell 2000 gained 1.0%. […] The S&P 500 energy (+2.8%), financials (+2.3%), industrials (+1.8%), and materials (+1.7%) sectors set the performance pace. The health care sector (-0.5%) was the only S&P 500 sector that closed lower today. […] WTI crude futures increased 0.7%, or $0.30, to $42.61/bbl. Natural gas futures increased 1.5% to $2.612/MMBtu. Unleaded gasoline futures increased 3.9% to $1.26/gallon. U.S. Treasuries finished near their flat lines in a muted session, suggesting bond investors were less enthused about the vaccine news. The 2-yr yield was flat at 0.15%, and the 10-yr yield increased one basis point to 0.65%. The U.S. Dollar Index increased 0.1% to 93.30. […] Nasdaq Composite +26.8% YTD S&P 500 +6.2% YTD Dow Jones Industrial Average -0.8% YTD Russell 2000 -6.0% YTD