Directional Bias For The Day:

• S&P Futures are higher at 8:00 AM; the futures are drifting higher from 3979.75 since 5:30 AM;
• The odds are for an up day with elevated volatility – watch for a break below 3979.75 for a change of sentiments
• The key economic data report due during the day:
  • ADP Non-Farm Employment Change ( 300K est.; prev. 128K ) at 8:15 AM
  • Chicago PMI ( 52.5 est.; prev. 52.1) at 9:45 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3975.62, 3965.21, and 3951.43
• Critical resistance levels for S&P 500 are 4003.07, 4017.42, and 4044.98
• Key levels for E-mini futures: break above 4018.25, the high at 12:30 AM and a break below 3979.25, the low at 5:30 AM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (September 2022) closed at 3986.25, and the index closed at 3986.16 – a spread of about +0.25 points; the futures closed at 3987.50; the fair value is -1.25
• Pre-NYSE session open, futures are higher – at 8:15 AM, S&P 500 futures were up by +14.75, Dow by +66, and NASDAQ by +95.25

Markets Around The World

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

• Commodities (Compared to two weeks ago):
  • Energy futures are mixed
  • 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 +28.6 basis points from two weeks ago;
  • The 30-year is at 3.220%, up +10.7 basis points;
  • The 2-year yield is at 3.429%, up +18.8 basis points;
  • The 10-Year-&-2-Year spread is at -0.319, up from -0.417
  • The 30-Year-&-10-Year spread is at 0.110, down from 0.289
• VIX
  • At 26.17 @ 8:30 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-Neutral

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

Previous Session

Major U.S. indices closed lower on Tuesday, August 30, in higher volume. The major indices opened up but turned down immediately and then declined for most of the day. Most made Bearish Engulfing candles following a Doji-like candle, indicating greater bearishness.

From Briefing.com:

The stock market continued its selloff today with each of the major indices closing below their respective 50-day moving averages. […] The S&P 500, the Vanguard Mega Cap Growth ETF (MGK), and the Invesco S&P 500 Equal Weight ETF (RSP) all closed with a 1.1% loss. Growth and value stocks both suffered notable losses with the Russell 3000 Growth Index closing down 1.1% while the Russell 3000 Value Index closed down 1.2%. Market breadth reflected the selling bias today. Decliners led advancers by a nearly 4-to-1 margin at the NYSE and a 2-to-1 margin at the Nasdaq. Every S&P 500 sector closed in the red with losses ranging from 0.4% (financials) to 3.4% (energy). […] The 2-yr Treasury note yield rose four basis points to 3.46% while the 10-yr Treasury note yield was unchanged at 3.11%. […] The Conference Board’s Consumer Confidence Index rose to 103.2 in August (Briefing.com consensus 97.4) from a downwardly revised 95.3 (from 95.7) in July. This was the first increase in the index in four months. In the same period a year ago, the Consumer Confidence Index stood at 115.2. […] July JOLTS Job Openings totaled 11.239 million after the prior revised total of 11.04 million (from 10.698). June FHFA Housing Price Index rose 0.1% after the prior revised 1.3% increase (from 1.4%). June S&P Case-Shiller Home Price Index rose 18.6% (Briefing.com consensus 19.0%) following a prior 20.5% increase. Dow Jones Industrial Average: -12.5% YTD S&P 400: -13.9% YTD S&P 500: -16.4% YTD Russell 2000: -17.4% YTD Nasdaq Composite: -24.1% YTD Overseas:  Europe: DAX +0.5%, FTSE -0.9%, CAC -0.2% Asia: Nikkei +1.1%, Hang Seng -0.4%, Shanghai -0.4% Commodities:  Crude Oil -5.31 @ 91.60 Nat Gas -0.25 @ 9.05 Gold -13.70 @ 1736.50 Silver -0.25 @ 18.31 Copper -0.06 @ 3.55