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The E-mini S&P 500, which is down by about 0.2%, is pressured by the mixed earnings results from the banks. Major banks gave recession warnings with mixed results in profits from investment units while some got a profit boost from market volatility in the trading sector.

The slowdown of inflation in the US and Europe with the reopening of China gave a boost to the equities with hopes and prospects of easing the current global monetary policy.

Retail prices in Canada decreased by about 0.6% to the prior month in December while core prices fell by about 0.3% to the prior month, which may initiate buying in the equities.

However, the NY Empire State Manufacturing Index fell to -32.9 in January, the lowest since May 2020, pointing to signs of the effect of the contracted monetary policy which is giving mixed signs. Core bearish for the session while the median-term perspective might benefit from a potentially dovish tone from the central bank.

The daily interval of the E-mini S&P 500, trending higher for about six days in a row, hits a potential key resistance area that may lead buyers to liquidate long positions for a potential retracement to reload. The market trades above the Quarter’s developing value area and may target the upper balance extreme.

For the reason mentioned from the daily interval, the market has been rotational and contracted two sessions as traders may lean on the balance extreme to conclude rotational scenarios. The current bearish calculated session may find selling or long liquidation around the upper balance extremes or swing highs. Still, the bullish median-term perspective may lead to a mixed trading session.

The Asset Manager/Institutional flow was short covering combined with newly opened long positions while the funds' sector was opening new shorts with long liquidations, giving the market a balanced to mixed view from the managed money COT report as of data from the 10th January – actually visible on the hourly interval with the wide rotational swings.

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