Directional Bias For The Day:

• S&P Futures are higher at 8:00 AM; moving up since 9:30 AM on Monday with small sideways consolidations
• The odds are for an up day – watch for a break below 4552.50 for a change of sentiments
• Key economic data report due during the day:
  • HPI ( 1.0% vs. 1.5% est.; prev. 1.4%) at 9:00 AM
  • S&P/CS Composite-20 HPI ( 19.7% vs. 20.1% est.; prev. 19.9%( at 9:00 AM
  • CB Consumer Confidence ( 113.8 vs. 108.4 est.; prev. 109.3) at 10:00 AM
  • Richmond Manufacturing Index ( 12 vs. 4 sets.; prev. 3) at 10:00 AM
  • New Home Sales ( 800K vs. 755K est.; prev. 740K) a 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4572.62, 4559.67, and 4537.36
• Critical resistance levels for S&P 500 are 4580.28, 4594.08, and 4615.54
• Key levels for E-mini futures: break above 4580.75, the high of 4:15 AM and break below 4552.50, the low of 4:00 PM on Monday

Pre-Open

• On Monday at 4:00 PM, S&P futures (December 2021) closed at 4560.25 and the index closed at 4566.48 – a spread of about -6.25 points; futures closed at 4558.00 for the day; the fair value is +2.25
• Pre-NYSE session open, futures are higher – at 7:45 AM, S&P 500 futures were up by +17.50; Dow by +111; and NASDAQ by +92.75

Markets Around The World

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

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

• Commodities (Compared to two weeks ago):
  • Energy futures are mixed
  • Precious metals are higher
  • Industrial metals are mostly higher
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 1.635%, up +2.1 basis points from two weeks ago;
  • 30-years is at 2.085%, down -8.1 basis points;
  • 2-years yield is at 0.441%, up +12.7 basis points;
  • The 10-Year-&-2-Year spread is at 1.194, down from 1.300
  • The 30-Year-&-10-Year spread is at 0.450, down from 0.552
• VIX
  • At 14.92 @ 6:30 AM; down from the last close; below 5-day SMA;
  • Recent high = 24.89 on October 1; low =  14.84 on October 22
  • 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, October 25, in lower volume. S&P 500, Dow Jones Industrial Average, NYSE Composite, and Wilshire 5000 Total Index made all-time intraday and closing highs. The major indices open up and then after a brief retracement drifted higher for the rest of the day.

From Briefing.com:

The S&P 500 (+0.5%) and Dow Jones Industrial Average (+0.2%) set intraday and closing record highs on Monday, as the market continued to benefit from positive momentum in front of a big week for earnings. The Nasdaq Composite (+0.9%) and Russell 2000 (+0.9%) outperformed with roughly 1% gains. […] After a shaky start, the S&P 500 ground higher throughout the day, leaving nine of the 11 S&P 500 sectors in positive territory on a closing basis. The consumer discretionary (+2.1%) and energy (+1.5%) led the advance with solid gains, while the financials (-0.2%) and utilities (-0.4%) sectors closed slightly lower. […] WTI crude futures, meanwhile, tagged $85.00 per barrel early in the day before turning around and settling lower by 0.1%, or $0.04, to $83.73/bbl. Natural gas futures jumped 12.0% to $5.88/MMBtu. In the Treasury market, shorter-dated Treasury yields paced the decline. The 2-yr yield decreased four basis points to 0.43%, and the 10-yr yield decreased two basis points to 1.64%. The U.S. Dollar Index increased 0.2% to 93.83. […] S&P 500 +21.6% YTD Nasdaq Composite +18.1% YTD Russell 2000 +17.1% YTD Dow Jones Industrial Average +16.8% YTD Overseas:  Europe: DAX +0.4%, FTSE +0.3%, CAC -0.3% Asia: Nikkei -0.7%, Hang Seng flat, Shanghai +0.8% Commodities:  Crude Oil -0.04 @ 83.73 Nat Gas +0.65 @ 5.90 Gold +13.50 @ 1807.30 Silver +0.22 @ 24.60 Copper +0.02 @ 4.52