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• US stock futures show modest gains after Monday’s decline, with technology and growth stocks experiencing a selloff.
• Mega-cap technology names, including Tesla, Nvidia, and Microsoft, recorded sharp losses, while small caps mostly gained.
• Investors anticipate key US economic reports, including home sales, durable goods, and consumer confidence data.
• The dollar index eases slightly as market participants assess the economic and monetary policy outlook.
• Federal Reserve Chair Jerome Powell and other officials indicate the likelihood of further rate increases due to persistently high inflation.
• US private sector activity slows to a three-month low in June, primarily driven by a contraction in the manufacturing sector.
• Aggressive monetary tightening by major central banks, such as the European Central Bank and the Bank of England, adds pressure to the US dollar.

The E-mini S&P 500 experienced a modest increase of about 0.2% during the European trading session. However, the market faced selling pressure around the prior VWAP close level, which coincided with the low volume area from the previous session. Despite this, there is a possibility that the market might aim to fill this low volume area, finding buying support around the lower extreme of the current developing value area.

Calculations for the session reveal a mixed dataset, with a lower dollar potentially providing support to the equities sector. The volatility index remains neutral, suggesting a balanced behavior in the session. The median-term perspective seemingly points to the upside for this month.

In the daily interval, there has been a downward trend in recent days. The low of the previous week’s inside bar has been breached, and there could be potential absorption to close the week with an inside failure pattern. Another scenario to consider is a break lower, indicating further selling behavior in the market.

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