Directional Bias For The Day:

• S&P Futures are higher;
• The odds are for an up day with elevated volatility and with a good chance of a sideways to down move from the pre-open levels around 4275.00 levels — watch for a break below 4255.00 for a change of sentiments
• Key economic data report due during the day:
  • Building Permits ( 1.60M vs. 1.69M est.; prev. 1.68M) at 8:30 AM
  • Housing Starts ( 1.64M vs. 1.59M est.; prev. 1.54M) at 8:30 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4258.64, 4235.59, and 4212.77
• Critical resistance levels for S&P 500 are 4296.40, 4305.39, and 4322.53
• Key levels for E-mini futures: break above 4279.25, the high of 3:30 AM and break below 4255.00, the low of 12:00 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (September 2021) closed at 4255.00 and the index closed at 4258.49 – a spread of about -3.50 points; futures closed at 4251.25 for the day; the fair value is +3.75
• Pre-NYSE session open, futures are higher – at 8:15 AM, S&P 500 futures were up by +21.00; Dow by +212, and NASDAQ by +59.00

Markets Around The World

• Markets in the East closed lower
• European markets are higher
• Currencies (from two weeks ago):
  

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

• Commodities (from two weeks ago):
  • Energy futures are lower
  • Precious metals are mixed
  • Industrial metals are lower
  • Most soft commodities are mixed
• Treasuries (from two weeks ago)
  • 10-years yield closed at 1.181%, down -18.9 basis points from two weeks ago;
  • 30-years is at 1.815%, down -18.9 basis points;
  • 2-years yield is at 0.218%, down -0.2 basis points;
  • The 10-Year-&-2-Year spread is at 0.963, down from 1.150
• VIX
  • At 21.54 @ 7:45 AM; down from the last close; above 5-day SMA;
  • Recent high =  25.09 on July 19; low =  15.94 on July 13
  • Sentiment: Risk-Neutral-On

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

Previous Session

Major U.S. indices closed lower on Monday, July 19 in higher volume. The market gapped down at the open and then traded down for most of the day before bouncing up a bit in the last half hour of the session.

From Briefing.com:

The stock market declined sharply on Monday with index losses ranging between 1.1% (Nasdaq Composite) and 2.1% (Dow Jones Industrial Average), as risk sentiment remained pressured by growth concerns. The Russell 2000 (-1.5%) entered correction territory, which is typically defined as a 10% decline from a recent high. There was a relatively encouraging finish, though, that helped the S&P 500 (-1.6%) close above its 50-day moving average (4240) after falling below it during the session. Still, the losses were spread across all 11 S&P 500 sectors and all 30 Dow components. The energy (-3.6%) and financials (-2.8%) sectors took the brunt of the damage and extended recent losses while the consumer staples sector (-0.3%) declined just 0.3%. Declining issues outpaced advancing issues by a 7:1 margin at the NYSE. […] The Treasury market remained a signpost for growth concerns, as the 10-yr yield dropped 12 basis points to 1.18%. In addition, WTI crude futures dropped 7.4%, or $5.34, to $66.42/bbl, as investors factored in expectations for weaker demand with a confirmation from OPEC+ that it will increase production, starting next month. The 2-yr yield decreased two basis points to 0.21%. The U.S. Dollar Index increased 0.2% to 92.84. […] Monday’s economic data was limited to the NAHB Housing Market Index for July, which decreased to 80 (Briefing.com consensus 82) from 81 in June. Looking ahead, investors will receive Housing Starts and Building Permits for June on Tuesday. S&P 500 +13.4% YTD Dow Jones Industrial Average +11.0% YTD Nasdaq Composite +10.8% YTD Russell 2000 +7.9% YTD Overseas:  Europe: DAX -2.6%, FTSE -2.3%, CAC -2.5% Asia: Nikkei -1.3%, Hang Seng -2.2%, Shanghai flat Commodities:  Crude Oil -5.43 @ 66.22 Nat Gas +0.10 @ 3.78 Gold -5.50 @ 1809.20 Silver -0.63 @ 25.14 Copper -0.13 @ 4.19