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• US stock futures declined as investors shifted from technology and growth stocks to other sectors.
• GameStop shares fell nearly 20% after the company fired its CEO and appointed a new executive chairman.
• The Dow increased 0.27% in regular trading, while the S&P 500 and Nasdaq Composite experienced declines.
• Sectors such as energy, real estate, utilities, industrials, materials, and financials performed well, while communication services, technology, and consumer discretionary sectors underperformed.
• Investors are awaiting the Federal Reserve’s policy meeting next week for potential market-moving decisions.
• Cautious sentiment prevails ahead of inflation data and the Fed’s decision, with expectations of a rate hike in July.
• The US trade deficit widened in April due to increased imports and decreased exports.
• The hike actions of the Bank of Canada and Reserve Bank of Australia have attracted investors away from the US dollar.

The E-mini S&P 500 is currently experiencing a relatively stable and balanced trading pattern in the short term, with traders relying on extreme price levels to determine rotational scenarios. The volume profile analysis indicates a balanced market structure for the week – traders may lean on the extremes, with the potential that sellers may target the lower volume areas from the prior week’s profile. The negative volatility observed across different timeframes is viewed as a bullish signal by investors, as the market has shown signs of absorbing selling pressure around lower extremes and swing lows, suggesting a potential return to the mean in this particular session.

Traders should remain mindful of the upcoming rollover date on Friday, which could introduce volatility as the market targets both swing highs and lows. There is a slightly bullish sentiment across different contract maturities for the front-month contract.

The expectation of a rate hike by the Federal Reserve in July could prompt selling pressure, although this outlook may change depending on forthcoming inflation data. Such data could influence the Fed’s decision and potentially lead to a pause in the tightening cycle.

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