Directional Bias for the Day:

• S&P Futures are higher at 9:00 AM. The futures have been trending up since 11:340 AM on Tuesday and are up more than 35 points.
• Odds are for an up day. Watch for a break below 6075.00 and 5068.75 for a change of sentiments.
• The notable economic data due during the day:
  • ADP Non-Farm Employment Change (146K vs. 152K est.; prev. 184K) at 8:15 AM.
  • Final Service PMI (57.0 est.; prev. 57.0) at 9:45 AM
  • ISM Services PMI (55.7 est.; prev. 56.0) at 10:00 AM.
  • Factory Orders (0.2% est.; prev. -0.5%) at 10:00 AM.
  • Fed Chair Powell speaks at 1:45 PM.
  • Beige Book at 2:00 PM.

Key Levels:

• Critical support levels for the S&P 500 are 6053.58, 6045.48, and 6035.33.
• Critical resistance levels for the S&P 500 are 6063.79, 6075.52, and 6093.75.
• The key levels for E-mini futures are 6084.25, the high at 8:45 AM and 6075.00, the low at 5:15 AM.

Pre-Open

• On Tuesday at 4:00 PM, S&P futures (December 2024) closed at 6062.75, and the index closed at 6049.88 – a spread of about +12.75 points; the futures closed at 6063.25; the fair value is -0.50.
• Pre-NYSE session open, futures were higher – at 8:45AM, the S&P 500 futures were up by +18.00, Dow by +176, and NASDAQ by +145.25.

Markets Around the World

• Markets in the East closed mixed – Shanghai, Hong Kong, Sydney, and Seoul closed down; Tokyo, Mumbai, and Singapore closed up.
• European markets are mostly higher – the U.K. and Switzerland 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 lower.
  • Soft commodities are mixed.
• Treasuries (Compared to two weeks ago)
  • The 10-year yield closed at 4.230, down -17.2 basis points from two weeks ago.
  • The 30-year is at 4.409%, down -17.3 basis points.
  • The 2-year yield is at 4.188%, down -10.3 basis points.
  • The 10-Year-&-2-Year spread is at 0.042, down from 0.111.
  • The 30-Year-&-10-Year spread is at 0.179, down from 0.180.
• VIX
  • At 13.16 @ 8:45 AM; down from the last close; below the 5-day SMA
  • Recent high = 18.79 on November 20; low = 10.62 on July 19; Sentiment: Risk-On

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

Previous Session

Most major U.S. indices closed mixed on Tuesday, December 3 in lower volume. S&P 500, NASDAQ Composite, and FT Wilshire 5000 Index closed higher. S&P 500 and FT Wilshire 5000 Index closed at all-time highs. NASDAQ made all-time intraday and closing highs.

All but two S&P sectors – Technology, and Communications – closed lower.  Dollar index closed lower, crude oil was lower, and precious metals were up. Industrial metals and the soft commodities were mixed. The US Treasury yields closed up and the bonds down.

From Briefing.com

The S&P 500 (+0.1%) and Nasdaq Composite (+0.4%) moved further into record territory. There wasn’t a lot of conviction behind the upside moves, which were driven largely by mega cap gains, and the overall vibe in the market was more negative. The Dow Jones Industrial Average (-0.2%) settled slightly lower than yesterday while the Russell 2000 underperformed, dropping 0.7%.

Treasuries settled mixed, keeping buying in check in equities. The 10-yr yield, which hit 4.17% earlier, settled three basis points higher than yesterday at 4.22%. The increase in selling followed the JOLTS – Job openings report, which totaled 7.744 million in October, up from a revised count of 7.372 million in September (from 7.443 million). The 2-yr yield declined three basis points to 4.17%. 

• Nasdaq Composite: +29.8%
• S&P 500: +26.8%
• S&P Midcap 400: +20.4%
• Russell 2000: +19.2%
• Dow Jones Industrial Average: +18.6%