Directional Bias For The Day:

• S&P Futures are higher at 9:00 AM; forming a symmetrical triangle with a high point of 3937.75 and  a low point of 3908.00
• The odds are for an up day with elevated volatility and with a good chance of sideways from pre-open levels  – watch for a break below 3908.00 for a change of sentiments
• The key economic data report due during the day:
  • Goods Trade Balance ( -104.3B vs. -106.0B; prev. -106.7B ) at 8:30 AM
  • Prelim Wholesale Inventories ( 2.0% vs. 2.1% est.; prev. 2.2% ) at 8:30 AM
  • HPI ( 1.6% vs. 1.5% est.; prev. 1.6%) at 9:00 AM
  • S&P/CS Composite-20 HPI (21.2% vs. 21.5% est; prev. 21.2% ) at 9:00 AM
  • CB Consumer Confidence ( 100.0 est.; prev. 106.4) at 10:00 AM
  • Richmond Manufacturing Index ( -4 est.; prev. -9%) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3906.35, 3889.66, and 3880.60
• Critical resistance levels for S&P 500 are 3927.72, 3937.65, and 3943.18
• Key levels for E-mini futures: break above 3929.50, the high at 7:30 AM and a break below 3910.75, the low at 8:30 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (September 2022) closed at 3905.50 and the index closed at 3900.11 – a spread of about +5.25 points; the futures closed at 3903.75; the fair value is +1.75
• Pre-NYSE session open, futures are higher – at 9:00 AM, S&P 500 futures were up by +17.00, Dow by +160; and NASDAQ by +38.50

Markets Around The World

• Markets in the East closed higher
• European markets are mostly up – Switzerland is down
• Currencies (Compared to two weeks ago):
  

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

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • Precious metals are lower
  • Industrial metals are mostly lower
  • Soft commodities are mostly lower
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.217%, down -14.9 basis points from two weeks ago;
  • The 30-year is at 3.329%, down -3.9 basis points;
  • The 2-year yield is at 3.103%, down -25.5 basis points;
  • The 10-Year-&-2-Year spread is at 0.114, up from 0.008
  • The 30-Year-&-10-Year spread is at 0.112, up from 0.001
• VIX
  • At 26.90 @ 9:00 AM; up from the last close; below the 5-day SMA;
  • Recent high = 35.05 on June 13; low = 24.94 on May 4
  • Sentiment: Risk-On-Neutral

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

Previous Session

Major U.S. indices closed mostly lower on Monday, June 27, in lower volume. Russell 2000 and NYSE Composite closed higher. The day’s price-action was sideways within a narrow range.

From Briefing.com:

[…] Of the 11 S&P 500 sectors, three closed in the green. Energy (+2.8%) was the leader by a decent margin followed by the defensive-oriented utilities (+0.8%) and health care (+0.4%) sectors. The top laggards were the consumer discretionary (-1.1%), communication services (-1.1%), materials (-0.8%), and information technology (-0.6%) sectors. Separately, Treasury note yields settled the session near their highs of the day after some relatively soft auction results for the 2-yr and 5-yr note yields. The 2-yr note yield rose six basis points to 3.12% while the 10-yr note yield rose seven basis points to 3.19%. […] Total durable goods orders increased 0.7% month-over-month (Briefing.com consensus +0.1%) following an unrevised 0.4% increase in April. Excluding transportation, durable goods orders also increased 0.7% (Briefing.com consensus +0.4%) following a downwardly revised 0.2% increase (from 0.3%) in April. […] May Pending Home Sales 0.7% (Briefing.com consensus -3.5%); Prior was revised to -4.0% from -3.9% […] Dow Jones Industrial Average: -13.5% YTD S&P 500: -18.2% YTD S&P 400: -17.7% YTD Russell 2000: -21.1% YTD Nasdaq Composite: -26.3% YTD Overseas:  Europe: DAX +0.5%, FTSE +0.7%, CAC -0.4% Asia: Nikkei +1.4%, Hang Seng +2.4%, Shanghai +0.9% Commodities:  Crude Oil +1.69 @ 109.34 Nat Gas +0.30 @ 6.52 Gold -6.00 @ 1823.60 Silver +0.02 @ 21.13 Copper +0.01 @ 3.74