Directional Bias For The Day:

• S&P Futures are lower at 8:30 AM; declined more than 30 points since 11:00 PM to around 3925.00
• The odds are for a down day with elevated volatility – watch for a break above 3936.00 and 3950.50  for a change of sentiments
• The key economic data report is due during the day:
  • Revised Non-Farm Productivity  ( 0.6% est.; prev. 0.3%) at 8:30 AM
  • Revised Unit Labor Cost ( 3.1% est.; prev. 3.5%) at 8:30 AM

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3918.39, 3906.54, and 3887.71
• Critical resistance levels for S&P 500 are 3943.86, 3960.12, and 3984.49
• The key levels for E-mini futures: break above 3936.50, the high at 6:00 AM, and a break below 3914.50, the low of 3:15 PM on Tuesday

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (December 2022) closed at 3943.75, and the index closed at 3941.26 – a spread of about +2.50 points; the futures closed at 3945.00; the fair value is -1.25
• Pre-NYSE session open, futures are lower – at 6:45 AM, S&P 500 futures were down by -15.25, Dow by -87, and NASDAQ by -76.00

Markets Around The World

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

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • Precious metals are higher
  • Industrial metals are mostly lower
  • Soft commodities are mixed
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.513%, down -24.5 basis points from two weeks ago;
  • The 30-year is at 3.523%, down -30.7 basis points;
  • The 2-year yield is at 4.367%, down -14.2 basis points;
  • The 10-Year-&-2-Year spread is at -0.854, down from -0.751
  • The 30-Year-&-10-Year spread is at 0.010, down from 0.072
• VIX
  • At 22.53 @ 6:30 AM; up from the last close; above the 5-day SMA;
  • Recent high = 26.59 on November 10; low = 18.95 on December 2
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed lower on Tuesday, December 6, in mixed volume. S&P 500 and NASDAQ Composite traded in higher volume.

The major indices opened lower and then declined more for the rest of the day.

From Briefing.com:

[…] Today’s sell-off saw the S&P 500 get rejected at the 4,000 level and give back all the post-Powell speech gains. […] The 10-yr note yield, which is more sensitive to inflation, fell nine basis points to 3.51%. […] Today’s sell off was orderly in nature, but fairly broad based. Declining issues outpaced advancing issues by a greater than 2-to-1 margin at both the NYSE and the Nasdaq. Ten of the 11 S&P 500 sectors suffered losses today that ranged from 0.7% (consumer staples) to 2.7% (energy). Utilities (+0.7%), meanwhile, was the lone sector in positive territory. […] Dow Jones Industrial Average: -7.6% YTD S&P Midcap 400: -12.7% YTD Russell 2000: -19.3% YTD S&P 500: -17.3% YTD Nasdaq Composite: -29.6% YTD […] Overseas:  Europe: DAX -0.7%, FTSE -0.6%, CAC -0.1% Asia: Nikkei +0.2%, Hang Seng -0.4%, Shanghai +0.0% Commodities:  Crude Oil -2.88 @ 74.44 Nat Gas -0.19 @ 5.43 Gold +1.10 @ 1780.70 Silver -0.15 @ 22.23 Copper +0.03 @ 3.81