Directional Bias For The Day:

• S&P Futures are lower at 9:00 AM; declined more than 100 points from the high before the CPI report at 8:30 AM
• The odds are for a down day with elevated volatility – watch for a break above 3793.25
• The key economic data report due during the day:
  • CPI ( 1.3% vs. 1.1% est.; prev. 1.0%) at 8:30 AM
  • Core CPI ( 0.7% vs. 0.5% est.; prev. 0.6%) at 8:30 AM
  • Beige Book at 2:00 PM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3765.41, 3743.64, and 3738.67
• Critical resistance levels for S&P 500 are 3792.61, 3802.09, and 3822.05
• Key levels for E-mini futures: break above 3793.25, the high at 8:32 AM and a break below 3753.25, the low at 8:47 AM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (September 2022) closed at 3824.00, and the index closed at 3818.80 – a spread of about +5.25 points; the futures closed at 3823.75; the fair value is +0.25
• Pre-NYSE session open, futures are lower – at 8:45 AM, S&P 500 futures were down by -61.00, Dow by -344; and NASDAQ by -242.50

Markets Around The World

• Markets in the East closed mixed – Shanghai, Tokyo, Sydney, and closed higher; Hong Kong, Mumbai, and Singapore closed lower
• European markets are down
• Currencies (Compared to two weeks ago):
  

  Up	Down
  Dollar index USD/JPY USD/CHF USD/CAD INR/USD	EUR/USD GBP/USD AUD/USD NZD/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 3.038%, down -16.8 basis points from two weeks ago;
  • The 30-year is at 3.205%, down -10.5 basis points;
  • The 2-year yield is at 3.045%, down -8.9 basis points;
  • The 10-Year-&-2-Year spread is at -0.007, up from 0.072
  • The 30-Year-&-10-Year spread is at 0.167, up from 0.104
• VIX
  • At 28.78 @ 8:30 AM; up from the last close; above the 5-day SMA;
  • Recent high = 35.05 on June 13; low = 24.43 on July 8
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed lower on Tuesday, July 12, in higher volume. The market was under pressure from the open. It briefly recovered in the mid-afternoon but then declined in the final hour of trading and closed near the lows.

From Briefing.com:

[…] WTI crude oil futures settled 8.0% lower to $95.48/bbl. Natural gas futures settled 4.6% lower to $6.03/mmbtu. Unleaded gasoline futures settled 5.9% lower to $3.25/gal. […] By the close, the EUR/USD was down 0.1% to 1.0043. The USD Index was up 0.2% to 108.18. Every sector in the S&P 500 closed in negative territory with energy (-2.1%) showing the steepest losses coinciding with the falling cost of oil. The other top laggards were health care (-1.3%), information technology (-1.3%), and consumer discretionary (-1.2%). […] Market breadth reflected the late session selling interest. Earlier, advancers led decliners by a 2-to-1 margin at the NYSE and a 6-to-5 margin at the Nasdaq. At the close, decliners led advancers by a 6-to-5 margin at both the NYSE and Nasdaq. Separately, the 2s10s spread is still inverted with the 2-yr note yield falling three basis points to 3.03%. The 10-yr note yield fell three basis points to 2.96%. […] Dow Jones Industrial Average: -14.7% YTD S&P 400: -19.4% YTD S&P 500: -19.9% YTD Russell 2000: -23.0% YTD Nasdaq Composite: -28.0% YTD Overseas:  Europe: DAX +0.6%, FTSE +0.2%, CAC +0.8% Asia: Nikkei -1.8%, Hang Seng -1.3%, Shanghai -1.0% Commodities:  Crude Oil -8.26 @ 95.48 Nat Gas -0.29 @ 6.02 Gold -7.30 @ 1725.60 Silver -0.18 @ 18.88 Copper -0.15 @ 3.27