Directional Bias For The Day:

• S&P Futures are lower at 9:15 AM; declining since 2:30 AM
• The odds are for a down day with elevated volatility; watch for a break above 4681.75 for a change of sentiments
• Key economic data report due during the day:
  • Final Wholesale Inventories ( 1.2% est.; prev. 1.2%) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4631.97, 4614.20, and 4583.16
• Critical resistance levels for S&P 500 are 4662.74, 4675.99, and 4695.72
• Key levels for E-mini futures: break above 4666.50, the low of 4:30 PM on Friday and break below 4622.25, the low of 2:00 PM on December 22

Pre-Open

• On Friday at 4:00 PM, S&P futures (March 2022) closed at 4668.75 and the index closed at 4677.03 – a spread of about -8.25 points; futures closed at 4667.75 for the day; the fair value is +1.00
• Pre-NYSE session open, futures are lower – at 9:00 AM, S&P 500 futures were down by -30.25; Dow Down by -80; and NASDAQ by -191.75

Markets Around The World

• Markets in the East closed mostly higher – Sydney and Seoul closed down;  Tokyo id not trade
• European markets mostly lower – Spain is higher
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are lower
  • Industrial metals are mostly lower
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 1.796%, up +30.3 basis points from two weeks ago;
  • 30-years is at 2.138%, up +23.3 basis points;
  • 2-years yield is at 0.866%, up +17.5 basis points;
  • The 10-Year-&-2-Year spread is at 0.930, up from 0.802
  • The 30-Year-&-10-Year spread is at 0.342, down from 0.412
• VIX
  • At 21.04 @ 8:30 AM; up from the last close; above 5-day SMA;
  • Recent high = 27.39 on December 20; low =  16.34 on January 4
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed mostly lower on Friday, January 7, in mixed volume. NYSE Composite closed lower. Dow Jones Transportation Average and NASDAQ Composite traded in higher volume.

For the week, major US Indices closed lower in higher volume. Asian and European stocks were mixed. The dollar index was up, energy futures were up, precious metals and industrial metals were mostly down and soft commodities closed mostly higher.The US Treasury yields inched up for the week.

From Briefing.com:

The S&P 500 declined 0.4% on Friday, as money continued to flow away from growth stocks and into value stocks as the 10-yr yield hit 1.80% intraday. […] More clearly, the Russell 3000 Growth Index fell 1.1% while the Russell 3000 Value Index rose 0.2%. The small-cap Russell 2000 declined 1.2%. From a sector perspective, the S&P 500 information technology (-1.0%) and consumer discretionary (-1.7%) sectors underperformed in negative territory. Conversely, the energy (+1.5%) and financials (+1.2%) sectors rose more than 1.0%, extending their weekly gains to more than 10.0% and 5.0%, respectively. […] The 10-yr yield, as mentioned, hit 1.80% in the hours following the employment report, but ended the session at 1.77%, or four basis points above yesterday’s settlement. The 2-yr yield decreased two basis points to 0.87%. The U.S. Dollar Index fell 0.6% to 95.75. WTI crude futures fell 0.6%, or $0.46, to $78.94/bbl. […] December payrolls growth was quite weak, but that shouldn’t remain the case as we get past the Omicron hurdle. The unemployment rate fell to an astounding 3.9%, although the labor force participation rate did not improve. It held steady at 61.9%. Average hourly earnings were up a stronger than expected 0.6%. […] Consumer credit increased by $39.9 bln in November. The prior month saw a downward revision to $16.1 bln from $16.9 bln. […] Dow Jones Industrial Average -0.3% YTD S&P 500 -1.9% YTD Russell 2000 -2.9% YTD Nasdaq Composite -4.5% YTD