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The E-mini S&P 500, which has little changed in the European trading session, trades slightly lower as market participants monitor the impact of the easing labor market and inflation.

Job openings were lower-than-expected, soaring the prices at the first glance while the concerns about a weakening economic situation and recession pressured the markets lower.

Today investors keep their attention on the ADP employment report and the ISM service survey to conclude scenarios in the interest rate hike projections. Any negative data might have a dovish effect, leading to the price possibly being higher. However, the negative data might raise concerns about the mentioned topic of recession which could drive markets lower.

The daily interval of the ES Futures contract closed with a drop lower and an outside bar which tends to be a hint for a potential change in the market context. In this case from bullish to balanced followed by a falling market due to possible hawkish remarks paired with economic concerns.

Looking at the TPO profile, which closed as a double distribution structure, opened in the lower distribution which could hint at a bearish session with selling around the single print area. Bullish scenarios might lead the market to fill the particular single print area with volume to keep the price balanced in the prior range.

1 Month Ago

The slightly higher dollar might lead sellers to add to core short positions around the developing VWAP of the session as well as the upper value extreme as a secondary short entry area, depending on the auction and upcoming economic data.

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