Directional Bias For The Day:

• S&P Futures are lower at 9:00 AM; moved up more than 30 points since 11:00 PM after declining  more than 60 points since the start of the week
• The odds are for an up day with elevated volatility – watch for a break below 4000.50 for a change of sentiments
• The key economic data report is due during the day
  • Empire State Manufacturing Index ( 11.6 vs. 15.3 est.; prev. 24.6) at 8:30 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4006.54, 3979.74, and 3963.90
• Critical resistance levels for S&P 500 are 4038.88, 4049.09, and 4068.82
• Key levels for E-mini futures: break above 4026.25, the high at 8:30 AM and a break below 4000.50, the low at 5:45 AM

Pre-Open

• On Friday at 4:00 PM, S&P futures (June 2022) closed at 4020.25 and the index closed at 4023.89 – a spread of about -3.50 points; futures closed at 4019.75 for the day; the fair value is +0.50
• Pre-NYSE session open, futures are mixed – at 8:45 AM, S&P 500 futures were down by -5.00; Dow up by +11; and NASDAQ down by -18.25

Markets Around The World

• Markets in the East closed mostly higher – Shanghai and Seoul were down; Singapore was closed
• European markets are mixed – Germany, France, and STOXX-600 are lower; the UK, Spain, Itlay, and Switzerland are higher
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are lower
  • Industrial metals are lower
  • Soft commodities are mostly lower
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 2.909%, up +2.2 basis points from two weeks ago;
  • 30-years is at 3.096%, up +14.9 basis points;
  • 2-years yield is at 2.590%, down -12.9 basis points;
  • The 10-Year-&-2-Year spread is at 0.319, up from 0.168
  • The 30-Year-&-10-Year spread is at 0.187, up from 0.060
• VIX
  • At 29.17 @ 8:15 AM; up from the last close; below the 5-day SMA;
  • Recent high = 35.48 on May 9; low = 24.94 on May 4
  • Sentiment: Risk-Off-Neutral

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

Previous Session

Major U.S. indices closed higher on Friday, May 13, in lower volume. The major indices gapped up at the open and then moved higher. They briefly loved sideways and drifted a bit lower in the mid-day day trading before again moving up near the close of the day. Most are making three-day Morning Star candlestick patterns.

For the week, the major indices closed mostly lower in mixed volume. Dow Jones Transportation Average closed up. Dow Jones Industrial Average and  Transports closed lower. Most indices in Asia and Europe closed lower. The dollar index and energy futures were up for the week. The precious metals were down, the industrial metals were mixed and most soft commodities were down for the week. The US Treasury yields closed up.

From Briefing.com:

The S&P 500 rallied 2.4% on Friday, bouncing from an oversold condition and closing back above the psychological 4,000 level. The Nasdaq Composite (+3.8%) and Russell 2000 (+3.1%) outperformed with gains over 3.0% while the Dow Jones Industrial Average rose 1.5%. […] All 11 S&P 500 sectors finished higher with gains ranging from 1.1% (utilities and health care) to 4.1% (consumer discretionary), with individual leadership belonging to the battered mega-cap stocks. […] Selling interest in Treasuries pushed yields higher: the 2-yr yield rose eight basis points to 2.59%, and the 10-yr yield rose 12 basis points to 2.94%. […] The preliminary University of Michigan Index of Consumer Sentiment for May dropped to 59.1 (Briefing.com consensus 63.5) from the final reading of 65.2 for April. In the same period a year ago, the index stood at 82.9. […] Import prices were flat in April after increasing 2.9% in March. Excluding oil, import prices rose 0.4% after increasing 1.2% in March. Export prices rose 0.6% after increasing 4.1% in March. Excluding agriculture, export prices also rose 0.5% after increasing 4.1% in March. […] Dow Jones Industrial Average -11.4 YTD S&P 500 -15.6% YTD Russell 2000 -20.2% YTD Nasdaq Composite -24.5% YTD