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The E-mini S&P 500 rose by about 0.6% towards $3980 in the European trading session as investors dug earnings and monitor hawkish comments from US Fed policymakers which may affect the equities bearish.

• St. Louis Fed President James Bullard said “the policy rate is not yet in a zone that may be considered sufficiently restrictive.”
• The Federal funds rate may target a 5% to 7% range to fight inflation which should pressure equities.
• Nasdaq was up by about 0.7% and the Dow Jones rose by about 0.4%.

• Gap, Ross Stores, Palo Alto Networks, Keysight Technologies, and Applied Materials all rose by better-than-expected earnings, giving the indexes a supportive stance in the overnight session to the European trading session.

The daily interval of the ES futures contracts trades is balanced on the daily interval. Traders may lean on the extremes to conclude rotational scenarios while the mentioned hawkish comments might be a bearish factor to consider for the bias. The dollar seems to point to the upside to rise in combination with a negative volatility index which might lead the market lower.

The hourly interval traded through the swing highs for possible absorption behavior with selling around the prior distribution area on the short-term perspective, depending on the auction. 

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Looking at the VWAP perspective on the daily interval, we can observe an imbalanced market above the Quarter's value area while targeting the Year's developing VWAP as the market trades as mentioned in the micro-balanced price range after the surge due to the softer-than-expected inflation report which might lead the Fed to slow down the pace of interest rate hikes. However, recent hawkish comments might pressure the market. 

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