Directional Bias For The Day:

• S&P Futures are lower at 9:00 AM; down more than 13 after rising more than 45 since 6:00 AM
• The odds are for a sideways to an up day with elevated volatility – watch for a break below 3602.00 for a change in sentiments
• No key economic data report is due during the day:

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3600.40, 3588.10, and 3584.13
• Critical resistance levels for S&P 500 are 3627.75, 3633.91, and 3652.17
• Key levels for E-mini futures: break above 3628.25, the high of 8:30 AM and a break below 3602.00, the low of 7:45 AM

Pre-Open

• On Monday at 4:00 PM, S&P futures (December 2022) closed at 3623.25, and the index closed at 3612.39 – a spread of about +10.75 points; the futures closed at 3625.25; the fair value is -2.00
• Pre-NYSE session open, futures are lower – at 9:00 AM, S&P 500 futures were down by -12.75, Dow by -48, and NASDAQ by -46.50

Markets Around The World

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

• Commodities (Compared to two weeks ago):
  • Energy futures are mixed
  • Precious metals are higher
  • Industrial metals are higher
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.929%, up +5.1 basis points from two weeks ago;
  • The 30-year is at 3.917%, up +21.9 basis points;
  • The 2-year yield is at 4.312%, down -3.5 basis points;
  • The 10-Year-&-2-Year spread is at -0.383, down from -0.469
  • The 30-Year-&-10-Year spread is at -0.012, down from 0.180
• VIX
  • At 33.23 @ 8:00 AM; up from the last close; above the 5-day SMA;
  • Recent high = 34.88 on September 28; low = 28.50 on October 5
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed lower on Monday, October 10, in lower volume. Most indices made Hammer or similar candlestick formations. The market opened higher but declined in the first half hour of trading. It turned around in the afternoon and clawed back some losses before the close.

From Briefing.com:

[…] The major indices opened to modest gains before sizable losses in mega cap and semiconductor stocks dragged the market into negative territory. […] Falling oil prices weighed on the S&P 500 energy sector (-2.1%), which closed in last place on the day after surging 13.7% last week. WTI crude oil futures fell 1.7% to $90.92/bbl. Natural gas futures fell 4.3% to $6.46/mmbtu. On the flip side, industrials (+0.3%) sat atop the leaderboard with a slim gain. […] Dow Jones Industrial Average: -19.6% YTD S&P Midcap 400: -20.4% YTD S&P 500: -24.2% YTD Russell 2000: -24.7% YTD Nasdaq Composite: -32.6% YTD Overseas:  Europe: DAX +0.1%, FTSE -0.5%, CAC -0.5% Asia: Nikkei market closed, Hang Seng -3.0%, Shanghai -1.7% Commodities:  Crude Oil -1.55 @ 90.92 Nat Gas -0.29 @ 6.46 Gold -30.80 @ 1676.60 Silver -0.59 @ 19.64 Copper +0.05 @ 3.44