Directional Bias For The Day:

• S&P Futures are lower at 8:00 AM; drifted down more than 30 points from 10:30 PM high of 3964.25
• The odds are for a down to sideways day with elevated volatility – watch for a break above 3947.75 for a change of sentiments
• The key economic data report due during the day:
  • Existing Home Sales (5.37M est.; prev. 5.41M) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3926.87, 3909.64, and 3899.92
• Critical resistance levels for S&P 500 are 3939.81, 3945.86, and 3974.39
• Key levels for E-mini futures: break above 3947.75, the high at 5:45 AM and a break below 3923.75, the low at 6:45 AM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (September 2022) closed at 3936.50,  and the index closed at 3936.69 – a spread of about -0.25 points; the futures closed at 3937.50; the fair value is -1.00
• Pre-NYSE session open, futures are lower – at 7:45 AM, S&P 500 futures were down by -7.75, Dow by -64; and NASDAQ by -13.25

Markets Around The World

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

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are lower
  • Industrial metals are mostly lower
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.019%, up +21.0 basis points from two weeks ago;
  • The 30-year is at 3.179%, up +14.7 basis points;
  • The 2-year yield is at 3.246%, up +41.7 basis points;
  • The 10-Year-&-2-Year spread is at -0.227, up from -0.020
  • The 30-Year-&-10-Year spread is at 0.160, up from 0.223
• VIX
  • At 24.64 @ 6:30 AM; up from the last close; below the 5-day SMA;
  • Recent high = 29.06 on July 13; low = 24.13 on July 15
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed higher on Tuesday, July 19, in mixed volume. Dow Jones Transportation Average and NASDAQ Composite traded in lower volume. The market opened higher and then traded higher for the rest of the day. Most indices are breaking above symmetrical triangles.

From Briefing.com:

[…] The S&P 500 steadily climbed to close near its intraday high, which put it above the key technical level of its 50-day moving average (3,922). Each of the main indices closed right around session highs. […] Advancing issuing outpaced declining issues by a 5-to-1 margin at the NYSE and a nearly 3-to-1 margin at the Nasdaq. […] All 11 sectors closed in the green with gains from 0.7% (utilities) to 3.6% (industrials). The countercyclical consumer staples (+1.1%), health care (+1.8%), and utilities (+0.7%) sectors trailed the broader market. […] Energy complex futures settled the session mostly lower. WTI crude oil futures fell 2.0% to $100.72/bbl. Natural gas futures fell 2.8% to $7.19/mmbtu. Unleaded gasoline futures rose 0.9% to $3.31/gal. Treasury yields rose today with the 2-yr note closing up six basis points to 3.22%. The 10-yr note yield rose six basis points to 3.02%. […] June Housing Starts 1.559 mln (Briefing.com consensus 1.598 mln); Prior was revised to 1.591 mln from 1.549 mln; June Building Permits 1.685 mln (Briefing.com consensus 1.680 ml); Prior was unrevised at 1.695 mln […] Dow Jones Industrial Average: -12.4% YTD S&P 400: -16.4% YTD S&P 500: -17.4% YTD Russell 2000: -20.0% YTD Nasdaq Composite: -25.1% YTD Overseas:  Europe: DAX +2.7%, FTSE +1.0%, CAC +1.8% Asia: Nikkei +0.7%, Hang Seng -0.9%, Shanghai +0.0% Commodities:  Crude Oil -2.05 @ 100.72 Nat Gas -0.21 @ 7.18 Gold +1.70 @ 1709.70 Silver -0.02 @ 18.63 Copper -0.03 @ 3.28