Directional Bias For The Day:

• S&P Futures are lower at 9:00 AM; declined more than 60 points since 7:00 AM
• The odds are for a down day with elevated volatility and with a good potential for a bounce back from lows; watch for a break above 4386.75 for a change of sentiments
• Key economic data report due during the day:
  • Flash Manufacturing PMI ( 56.9 est.; prev. 57.7) at 9:45 AM
  • Flash Services PMI ( 54.9 est.; prev. 57.6) at 9:45 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4329.92, 4306.12, and 4290.49
• Critical resistance levels for S&P 500 are 4453.83, 4372.87, and 4386.75
• Key levels for E-mini futures: break above 4361.25, the low of 5:30 AM and break below 4311.75, the low of 9:00 AM

Pre-Open

• On Friday at 4:00 PM, S&P futures (March 2022) closed at 4385.50 and the index closed at 4397.94 – a spread of about -9.50 points; futures closed at 4390.00 for the day; the fair value is -4.50
• Pre-NYSE session open, futures are lower – at 9:00 AM, S&P 500 futures were down by -66.00; Dow by -402; and NASDAQ by -272.25

Markets Around The World

• Markets in the East closed mostly higher – Shanghai and Mumbai closed lower
• European markets are mixed – Germany, Italy, Switzerland, and STOXX 600 are up; the UK, France, and Spain are down
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are higher
  • Industrial metals are higher
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 1.827%, up +12.2 basis points from two weeks ago;
  • 30-years is at 2.138%, up +5.0 basis points;
  • 2-years yield is at 1.055%, up +21.3 basis points;
  • The 10-Year-&-2-Year spread is at 0.772, up from 0.863
  • The 30-Year-&-10-Year spread is at 0.311, down from 0.383
• VIX
  • At 31.92 @ 8:30 AM; up from the last close; above 5-day SMA;
  • Recent high = 35.32 on December 03, 2021; low =  17.36 on January 12
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed lower on Friday, January 21, in higher volume. Major indices opened lower and after a short bounce in the morning trade, they turned down and steadily declined for the rest of the day closing near the day’s lows.

For the week, the US indices were lower in mostly higher volume. Dow Jones Industrial Average traded in lower volume. Markets in Asia and Europe closed mostly down. The dollar index was up, energy futures were mixed, metals futures were up and soft commodities were mixed for the week. The US Treasury yields closed down for the week.

From Briefing.com:

The S&P 500 fell 1.9% on Friday, […] The Nasdaq Composite declined 2.7%, the Dow Jones Industrial Average declined 1.3%, and the Russell 2000 declined 1.8%. Eight of the 11 S&P 500 sectors fell at least 1.0%, including the communication services sector with a 3.9% decline. The consumer staples sector (+0.02%) closed fractionally higher. […] The 2-yr yield fell six basis points to 0.99%, and the 10-yr yield fell nine basis points to 1.75%. The U.S. Dollar Index decreased 0.1% to 95.63. WTI crude futures fell 1.3%, or $1.13, to $85.16/bbl. […] Dow Jones Industrial Average -5.7% YTD S&P 500 -7.7% YTD Russell 2000 -11.5% YTD Nasdaq Composite -12.0% YTD