The E-mini S&P 500 rose by about 0.5% in the New York trading session, bouncing back from the early losses of the European trading session due to the higher-than-expected US inflation.

The US core personal consumption price index came above expectations while personal spending increased in August, giving a slight bullish nuance by higher demand.

However, policymakers are still suggesting rate hikes even with the risk of recession to fight the soaring inflationary prices which pressures the equities sector.

The CME:ES may fall in the third straight Quarter, giving the lower periodicities a bearish bias. The month is down by about 7% while the market seemingly tries to find absorption around the swing lows of June, dipping slightly into the particular lower area currently and might close above June’s price range.

The daily interval established a balanced price range with a recent outside bar which signals a possible change in the current market context. Yesterday closed as inside day, hence the extremes might be targeted for absorption purposes.

The hourly interval found some buying by the positive economic spending numbers and with support around the lower extreme of the week’s developing value area, targeting rotational scenarios towards the upper-value extreme of this particular week.

More By This Author:

Euro Area Inflation Jumps Towards 10%
Dutch Gas Futures To Ease While Four Leaks Identified In Nordstream Pipeline
Monday’s Drop Of The Sterling Pound