Directional Bias For The Day:

• S&P Futures are lower at 8:15 AM, drifting lower since 1:00 AM – declined by more than 20 points to around 4155.00
• The odds are for a down to a sideways day – watch for a break above 4175.00 for a change of sentiments
• The major economic data report is due during the day
  • Final Wholesale Inventories ( 0.1% est.; prev. 0.1%) at 10:00 AM
  • FOMC members speeches

Directional Bias Before Open:

Key Levels:

• Critical support levels for S&P 500 are 4139.22, 4128.47, and 4107.6
• Critical resistance levels for S&P 500 are 4162.89, 4176.14, and 4195.44
• The key levels for E-mini futures are a break above 4175.00, the high at 3:00 AM, and a break below 4149.75, the low at 3:00 PM on Tuesady

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (March 2023) closed at 4175.00, and the index closed at 4164.00 – a spread of about +11.00 points; the futures closed at 4175.75; the fair value is -0.75
• Pre-NYSE session open, futures were lower – at 6:30 AM, S&P 500 futures were down by -13.25, Dow by -88, and NASDAQ by -25.25

Markets Around The World

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

• Commodities (Compared to two weeks ago):
  • Energy futures are lower
  • 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 3.674, up +20.5 basis points from two weeks ago;
  • The 30-year is at 3.705%, up +8.2 basis points;
  • The 2-year yield is at 4.471%, up +26.0 basis points;
  • The 10-Year-&-2-Year spread is at -0.797, down from -0.742
  • The 30-Year-&-10-Year spread is at 0.031, down from 0.154
• VIX
  • At 18.80 @ 6:15 AM; up from the last close; at/above the 5-day SMA;
  • Recent high = 23.76 on January 3; low = 17.06 on February 2
  • Sentiment: Risk-Neutral-On

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

Previous Session

Major U.S. indices closed higher on Tuesday, February 7, in higher volume. The major indices opened lower and traded sideways in subdued trading until Chair Powell’s interview at around Noon. Then, after a wild swing, they settled on an up move at 1:30 PM. Most are trying to break above there respective resistance levels. All but three S&P sectors – Utilities, Real Estate, and Consumer Staples – closed higher.

From Briefing.com:

[…] The main indices oscillated around their flat lines in the first half of the day as investors awaited Fed Chair Powell’s “Conversation with David Rubenstein” at the Economic Club of Washington, D.C. at 12:40 p.m. ET. […] Most of the S&P 500 sectors closed with a gain led by energy (+3.1%), communication services (+2.5%), and information technology (+2.5%). The consumer staples (-0.4%), real estate (-0.3%), and utilities (-0.1%) sectors were alone in the red by the closing bell. […] The 2-yr note yield was unchanged at 4.46% and the 10-yr note yield rose four basis points to 3.67%. Nasdaq Composite: +15.7% YTD Russell 2000: +12.0% YTD S&P Midcap 400: +11.0% YTD S&P 500: +8.5% YTD Dow Jones Industrial Average: +3.1% YTD […] December Trade Balance -$67.4 bln (Briefing.com consensus -$68.5 bln); Prior was revised to -$61.0 bln from -$61.5 bln […] Consumer credit increased by $11.6 bln in November (Briefing.com consensus $24.5 bln) following an upwardly revised $33.1 bln (from $27.9 bln) in November. […]