Directional Bias For The Day:

• S&P Futures are higher at 9:00 AM; the futures shot up 60 points following a favorable inflation report at 8:30
• The odds are for an up day with volatility and a good chance of moving sideways to down from the pre-open levels around 4200.00 elevated volatility – watch for a break below 4155.00 for a change of sentiments
• The key economic data report due during the day:
  • CPI ( 0.0% vs.; prev. 0.2% est.; prev. 1.3%) at 8:30 AM
  • Core CPI ( 0.3% vs. 0.5% est.; prev. 0.7%) at 8:30 AM
  • Final Wholesale Inventories ( 1.9% est. prev. 1.9%) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4186.62, 4151.91, and 4132.50
• Critical resistance levels for S&P 500 are 4200.10, 4227.62, and 4270.43
• Key levels for E-mini futures: break above 4201.50, the high at 8:30 AM and a break below 4155.00, the high at 7:30 PM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (September 2022) closed at 4125.00,  and the index closed at 4122.47 – a spread of about +2.50 points; the futures closed at 4124.5; the fair value is -0.75
• Pre-NYSE session open, futures are higher – at 8:30 AM, S&P 500 futures were up by +69.50, Dow by +400; and NASDAQ by +296.75

Markets Around The World

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

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • Precious metals are higher
  • Industrial metals are higher
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 2.695%, down -9.2 basis points from two weeks ago;
  • The 30-year is at 2.956%, down -5.3 basis points;
  • The 2-year yield is at 3.259%, up +20.6 basis points;
  • The 10-Year-&-2-Year spread is at -0.564, down from -0266
  • The 30-Year-&-10-Year spread is at 0.261, up from 0.222
• VIX
  • At 22.14 @ 8:30 AM; up from the last close; above the 5-day SMA;
  • Recent high = 29.06 on July 13; low = 21.21 on July 29
  • Sentiment: Risk-On

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

Previous Session

Major U.S. indices closed lower on Tuesday, August 9, in mostly lower volume. Dow Jones Industrial Average traded in higher volume.

The major indices gapped up at the open but started to decline in the first half-hour of trading.

From Briefing.com:

[…] The selling was broad-based but semiconductors, and semiconductor equipment makers, stuck out as particularly weak […] The PHLX Semiconductor Index (SOX) closed down 4.6% amid growing concerns that the cyclical semiconductor industry could be entering an extended slowdown phase. […] The Vanguard Mega Cap Growth ETF (MGK) closed down 1.0% versus a 0.6% loss in the Invesco S&P 500 Equal Weight ETF (RSP) and a 0.4% loss in the S&P 500. […] Besides information technology, the top laggards were consumer discretionary (-1.5%) and communication services (-0.7%) thanks to their mega cap components. […] Separately, the 2-yr note yield rose six basis points to 3.26% while the 10-yr note yield rose three basis points to 2.80%. […] Q2 Productivity-Prel -4.6% (Briefing.com consensus -4.5%); Prior was revised to -7.4% from -7.3%; Q2 Unit Labor Costs – Prel 10.8% (Briefing.com consensus 9.3%); Prior was revised to 12.7% from 12.6% […] July NFIB Small Business Optimism 89.9; Prior 89.5 Dow Jones Industrial Average: -9.8% YTD S&P 400: -12.1% YTD S&P 500: -13.5% YTD Russell 2000: -14.8% YTD Nasdaq Composite: -20.1% YTD Overseas:  Europe: DAX -1.1%, FTSE +0.1%, CAC -0.5% Asia: Nikkei -0.9%, Hang Seng -0.2%, Shanghai +0.3% Commodities:  Crude Oil -0.30 @ 90.37 Nat Gas +0.26 @ 7.83 Gold +5.80 @ 1811.20 Silver -0.15 @ 20.47 Copper -0.01 @ 3.58