Directional Bias For The Day:

• S&P Futures are lower at 8:45 AM; moving sideways since 3:00 AM between 4496.00 and 4486.25
• The odds are for a down day – watch for a break above 4501.00 for a change of sentiments
• The major economic data report due during the day:
  • Trade Balance ( -65.0B vs. -67.9B est.; prev. -63.7B) at 8:30 AM
  • Final Services PMI ( 50.5 vs. 51.00 est.; prev. 51.0) at 9:45 AM
  • ISM Services PMI ( 52.5 est.; prev. 52.7) at 10:00 AM
  • Beige Book at 2:00 PM

Directional Bias Before Open:

Key Levels:

• Critical support levels for the S&P 500 are 4481.34, 4461.52, and 4438.15
• Critical resistance levels for the S&P 500 are 4510.07, 4514.40, and 4534.55
• The key levels for E-mini futures are 4501.00, the high at 1:45 AM and 4486.25, the low at 3:15 AM

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (September 2023) closed at 4502.25, and the index closed at 4496.83 – a spread of about +5.50 points; the futures closed at 4502.50; the fair value is -0.25
• Pre-NYSE session open, futures were lower – at 8:30 AM, S&P 500 futures were down by -12.50, Dow by -101, and NASDAQ by -56.00

Markets Around The World

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

• Commodities (Compared to two weeks ago):
  • Energy futures are higher
  • Precious metals are higher
  • Industrial metals are mostly higher
  • Soft commodities are mostly higher
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 4.2540, down -7.4 basis points from two weeks ago;
  • The 30-year is at 4.358%, down -5.2 basis points
  • The 2-year yield is at 4.957%, down -10.0 basis points;
  • The 10-Year-&-2-Year spread is at -0.703, down from -0.729
  • The 30-Year-&-10-Year spread is at 0.104, up from +0.082
• VIX
  • At 14.25 @ 8:15 AM; up from the last close; above the 5-day SMA;
  • Recent high = 18.88 on August 18; low = 13.02 on September 1
  • Sentiment: Risk-Off

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

Previous Session

Major U.S. indices closed lower on Tuesday, September 5, in mixed volume. The Dow Jones Transportation Average and the Russell 2000 traded in higher volume.

The major indices opened lower and traded sidewyas for the rest of the day. All but three S&P sectors – Consumer Discretionary, Energy, and Technology – closed lower.