Directional Bias For The Day:

• S&P Futures are lower at 8:30 AM; broke below a sideways move since 3:45 PM on Thursday after the release of the CPI report
• The odds are for a down day with elevated volatility – watch for a break above 4018.25 for a change of sentiments
• The key economic data report due during the day:
  • CPI ( 1.0% vs. 0.7% est.; prev. 0.3%) at 8:30 AM
  • Core CPI ( 0.6% vs. 0.5% est.; prev. 0.6%) at 8:30 AM
  • Prelim UoM Consumer Sentiment ( 58.1 est.; prev. 58.4) at 10:00 AM
  • Prelim UoM Inflation Expectations ( prev. 5.3% ) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3970.01, 3932.32, and 3892.83
• Critical resistance levels for S&P 500 are 3981.88, 4000.60, and 4017.17
• Key levels for E-mini futures: break above 4018.25, the high at 8:30 AM and a break below 3958.75, the low at 8:30 AM

Pre-Open

• On Thursday at 4:00 PM, S&P futures (June 2022) closed at 4015.00 and the index closed at 4017.82 – a spread of about -2.75 points; futures closed at 4016.25 for the day; the fair value is -1.25
• Pre-NYSE session open, futures are mixed – at 8:00 AM, S&P 500 futures were up by +0.25; Dow down by -73; and NASDAQ up by +59.00

Markets Around The World

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

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are mixed
  • Industrial metals are mostly higher
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • 10-years yield closed at 3.044%, up +28.8 basis points from two weeks ago;
  • 30-years is at 3.171%, up +18.0 basis points;
  • 2-years yield is at 2.803%, up +31.9 basis points;
  • The 10-Year-&-2-Year spread is at 0.241, up from 0.272
  • The 30-Year-&-10-Year spread is at 0.127, up from 0.235
• VIX
  • At 26.61 @ 7:00 AM; up from the last close; above the 5-day SMA;
  • Recent high = 35.48 on May 9; low = 24.94 on May 4
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed lower on Thursday, June 9, in higher volume. Major indices broke below a sideways move that lasted several days. The major indices opened down and then mostly traded down for the rest of the day. Al S&P sectors closed down.

From Briefing.com:

[…] All 11 S&P 500 sectors finished lower, sporting losses that ranged from 1.5% to 2.8%, and the CBOE Volatility Index jumped 9.1% to 26.15. […] The worst-performing sector was the communication services sector (-2.8%), but the information technology (-2.7%) and financial (-2.6%) sectors were close behind. Eight of the 11 sectors declined at least 2.3%. […] Trading volume was not particularly heavy given the scope of today’s losses. 895 million shares traded at the NYSE, which wasn’t even the highest volume total of the week. The general lack of buying interest was evident in the market breadth, which favored declining issues by nearly a 5-to-1 margin at the NYSE and a margin approaching 3-to-1 at the Nasdaq. […] The 10-yr note yield settled its session up two basis points at 3.04%, but the 2-yr note yield jumped five basis points to 2.82% and hit its highest level since late-2018. The U.S. Dollar Index increased 0.8% to 103.32 as the euro pivoted from a point of strength immediately after the ECB announcement to a point of weakness. EUR/USD was down 0.9% to 1.0614. WTI crude futures had a relatively calm session, settling the day down 0.5% at $121.40/bbl. [..] Initial jobless claims for the week ending June 4 increased by 27,000 to 229,000 (Briefing.com consensus 208,000) while continuing claims for the week ending May 28 were unchanged at 1.306 million. […] Dow Jones Industrial Average: -11.3% YTD S&P 400: -13.0% YTD S&P 500: -15.7% YTD Russell 2000: -17.5% YTD Nasdaq Composite: -24.9% YTD Overseas:  Europe: DAX -1.7%, FTSE -1.5%, CAC -1.4% Asia: Nikkei +0.0%, Hang Seng +-0.7%, Shanghai -0.8% Commodities:  Crude Oil -0.56 @ 121.40 Nat Gas +0.30 @ 8.97 Gold -3.60 @ 1852.90 Silver -0.26 @ 21.82 Copper -0.06 @ 4.38