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The E-mini S&P 500 is up by about 0.5% in Monday’s early European trading session. The market seemingly headed higher towards Friday’s upper value extreme for potential selling in the New York trading session. Investors monitoring the Federal Reserve meeting, GDP data, and big tech earnings this week. The Fed is expected to raise rates by about 75 basis points in their next meeting around July 26-27. Focused for this week are earnings for Apple, Microsoft, Alphabet, Amazon, and Meta Platforms while Snap’s disappointing results led the market to sell off in social media stocks on Friday.

The market may find some selling around the upper-value extreme from Friday. Today’s lower distribution and the prior week’s VWAP close level are in play for potential buying, depending on the auction around it. The VIX stands currently around plus 3.5% which is giving the market a possible bullish bias for the day.

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The recent COT report gives a mixed view on the Leveraged and Asset Manager sectors. The Leveraged sector bought and sold new positions while the net holds short positions increased. Asset Managers were more likely to cover shorts and liquidate longs while the net long positions increased. This is giving the market a potential balanced view leading it to possible rotational scenarios. 

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