US stock markets are little changed, with the SPX Futures down by about 0.1% with the NASDAQ and the Dow Jones index as investors monitor the earnings reports from corporations.

• Tesla fell by about 10% after the electric vehicle maker reported lower quarterly net income and price cuts on its cars.
• Fed officials keep backing another interest rate hike to fight inflation with a suggested terminal rate of about 5.50% or 5.75%.
• Probabilities show another rate-hike of about 25 bps in the next meeting and a halt for several months, followed by cuts around November as a projection.
• The impact of the banking crisis on the economic structure is still monitored to react to any weakening with a potential easing of the tightening cycle.
• Investors lurking for the next economic data: US Manufacturing and Services PMI to gauge the status of the economy and the rate-hike path.
• UK reported lower retail sales and a contracted manufacturing PMI which hints at a weakening economy due to the elevated interest rates that might support the pound.
• European manufacturing contracted while services were still in the expansionary area giving mixed hints.
• The ECB might increase interest rates by 50 bps and another 25 bps to support the euro and fight inflation.
• The dollar might be supported by the hawkish comments and could pressure commodities and equities, up by about 0.1%.

Looking at the technical perspective of the SPX Futures contract, we can observe a balanced profile structure from the prior session as the market seemingly found buyers around the lower extreme and single print area to target the upper extreme as a rotational scenario – bullish. However, the fundamental aspect seems to be more likely to go with a bearish nuance for the session, depending on the New York trading auction, hence swing highs might be targeted for absorption to conclude a selling rotation.

The daily interval trades inside of the Quarter’s value area while the market found supportive buyers around the developing VWAP, traders still could target the lower extreme as a rotational scenario, depending on the mentioned upcoming economic data to gauge the rate-hike projection.

3 MONTHS AGO

(Click on image to enlarge)

Positive volatility for the intraday perspective points to the bearish side, while the median term seemingly is waiting for a reason to soar higher. 

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