Directional Bias For The Day:

• S&P Futures are higher at 8:00 AM; the futures are declining since 6:00 AM from 4072.75; at the lower end of a Double Top – a break below 4059.00 will have a 61.8% extension target around 4050.00, and the 100% extension target would be around 4045.00
• The odds are for an up day with elevated volatility – watch for a break above 4048.75 for a change of sentiments
• The key economic data report due during the day:
  • HPI ( 0.8% est.; prev. 1.4% ) at 9:00 AM
  • S&P/CS Composite-20 HPI ( 19.2% est.p; prev. 20.5%) at 9:00 AM
  • CB Consumer Confidence ( 97.6 est.; prev. 95.7) at 10:00 AM
  • JOLTS Job Openings ( 10.37M est.; prev. 10.70M) at 10:00 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4052.17, 4029.18, and 4017.42
• Critical resistance levels for S&P 500 are 4077.03, 4099.51, and 4111.92
• Key levels for E-mini futures: break above 4072.75, the high at 6:00 AM and a break below 4048.75, the high at 12:15 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (September 2022) closed at 4032.00, and the index closed at 4030.61 – a spread of about +1.25 points; the futures closed at 4031.25; the fair value is +0.75
• Pre-NYSE session open, futures are higher – at 7:00 AM, S&P 500 futures were up by +32.25, Dow by +210, and NASDAQ by +135.50

Markets Around The World

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are lower
  • Industrial metals are lower
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.11%, up +31.9 basis points from two weeks ago;
  • The 30-year is at 3.247%, up +15.1 basis points;
  • The 2-year yield is at 3.437%, up +25.9 basis points;
  • The 10-Year-&-2-Year spread is at -0.327, down from -0.387
  • The 30-Year-&-10-Year spread is at 0.137, down from 0.305
• VIX
  • At 25.19 @ 6:30 AM; down from the last close; above the 5-day SMA;
  • Recent high = 29.06 on July 13; low = 21.77 on August 25
  • Sentiment: Risk-On

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

Previous Session

Major U.S. indices closed lower on Monday, August 29, in lower volume. The major indices gapped down at the open but turned around in the late morning and advanced before declining again. Most made red Spinning Top of Doji candles. All but two S&P sectors – Energy and Utility – closed down.

From Briefing.com:

[…] The advance-decline line favored decliners by a roughly 2-to-1 margin at both the NYSE and the Nasdaq. […] The Russell 2000 closed down 0.9%; the S&P Mid Cap 400 closed down 0.7%; the Vanguard Mega Cap Growth ETF (MGK) closed down 1.0%; the Invesco S&P 500 Equal Weight ETF (RSP) closed down 0.6%. […] The Russell 3000 Growth Index closed down 0.9% while the Russell 3000 Value Index closed down 0.5%. […] Only two S&P 500 sectors closed with gains, utilities (+0.3%) and energy (+1.5%). […] Treasury yields settled higher with the 2-yr note yield rising two basis points to 3.42% while the 10-yr note yield rose eight basis points to 3.11%. […] Dow Jones Industrial Average: -11.7% YTD S&P 400: -12.6% YTD S&P 500: -15.4% YTD Russell 2000: -16.1% YTD Nasdaq Composite: -23.2% YTD Overseas:  Europe: DAX -0.6%, FTSE market closed, CAC -0.8% Asia: Nikkei -2.7%, Hang Seng -0.7%, Shanghai +0.1% Commodities:  Crude Oil +3.78 @ 96.91 Nat Gas +0.06 @ 9.30 Gold -0.00 @ 1750.20 Silver -0.21 @ 18.56 Copper -0.08 @ 3.61