Directional Bias For The Day:

• S&P Futures are lower at 9:00 AM; broke below a Double Bottom low – the 100.0% extension target near 3986.00 is achieved, and the 161.8% extension target is near 3980.00
• The odds are for a down day with elevated volatility – watch for a break above 3998.00 and a break above 4006.75 for a change of sentiments.
• No major economic data report is due during the day.

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 3971.64, 3961.28, and 3951.22
• Critical resistance levels for S&P 500 are 3989.79, 4005.98, and 4023.92
• The key levels for E-mini futures are a break above 3998.00, the high at 8:30 AM, and a break below 3980.25, the low at 8:00 AM on Monday

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (March 2023) closed at 4030.50, and the index closed at 4016.95 – a spread of about +13.50 points; the futures closed at 4032.75; the fair value is -2.25
• Pre-NYSE session open, futures were lower – at 8:45 AM, S&P 500 futures were down by -41.50, Dow by -272, and NASDAQ by -188.00

Markets Around The World

• Markets in the East closed mixed – Tokyo, Seoul, and Singapore closed up; Sydney and Mumbai closed down; Shanghai, and Hong Kong, were closed
• 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 mostly lower
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 3.442, down -17.9 basis points from two weeks ago;
  • The 30-year is at 3.600%, down -15.7 basis points;
  • The 2-year yield is at 4.151%, down -11.1 basis points;
  • The 10-Year-&-2-Year spread is at -0.709, down from -0.641
  • The 30-Year-&-10-Year spread is at 0.158, up from 0.136
• VIX
  • At 20.09 @ 8:00 AM; up from the last close; above the 5-day SMA;
  • Recent high = 23.76 on January 3; low = 18.01 on January 13
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed mostly lower on Tuesday, January 24, in lower volume. Dow Jones Industrial Average closed a bit higher. Major indices opened lower, and after recovering a little in the first hour of trading following volatile swings, they moved sideways for the rest of the day. Most made small Harami or similar indecisive candles.

From Briefing.com:

[…] The NYSE will declare a number of trades as erroneous from this morning and some trades will be busted that traded outside of trading bands, according to CNBC. […] Entering today, the Nasdaq Composite was up 8.6% for the year and the S&P 500 was up 4.7%. […] The S&P 500 was able to maintain its posture above the 4,000 level for most of the session, albeit on very light volume at the NYSE, and the Dow Jones Industrial Average was able to close with a gain of 0.3%. […] Separately, Treasury yields pulled back today. The 2-yr note yield fell four basis points to 4.19% and the 10-yr note yield fell six basis points to 3.47%. Nasdaq Composite: +8.3% YTD Russell 2000: +7.1% YTD S&P Midcap 400: +6.2% YTD S&P 500: +4.6% YTD Dow Jones Industrial Average: +1.8% YTD […] Overseas:  Europe: DAX -0.1%, FTSE -0.4%, CAC +0.3% Asia: Nikkei +1.5%, Hang Seng closed for holiday, Shanghai closed for holiday Commodities:  Crude Oil -1.34 @ 80.23 Nat Gas -0.17 @ 3.05 Gold +6.50 @ 1936.10 Silver +0.19 @ 23.77 Copper -0.01 @ 4.25