• Dow Jones trades almost flat, while S&P 500 and Nasdaq fell 0.4% and 0.5%, respectively, as traders analyze economic data and earnings reports.
• ISM Manufacturing PMI signals the ninth-straight month of factory sector contraction, and job openings reach over a two-year low, adding uncertainty to the labor market outlook.
• ZoomInfo Technologies and Uber experience stock declines after reporting lower revenue forecasts, while Caterpillar surges on better-than-expected earnings and revenue, with a warning of potential third-quarter sales and margin fall.
• The dollar index reaches 102.3, a one-month high, driven by fading risk appetite and positive economic data.
• US 10-year Treasury yield rises above 4% on strong economic indicators, supporting the case for the Federal Reserve to maintain a hawkish stance.
• Markets anticipate the Fed’s next move with an 81% chance of steady rates in September and 31% odds of a quarter-point increase in November.

The E-mini S&P 500 closed with a balanced profile in the prior session, suggesting traders might rely on the extremes to determine rotational scenarios. Economic data appears to have a bullish nuance for the market, combined with absorption around the swing lows, potentially leading the market toward the upper extreme.

The higher dollar and positive volatility are putting pressure on the market, indicating the possibility of a retracement towards the upper value extreme of the developing VWAP. Core sellers might view this area as an opportunity to add to core short positions, as the market shows some weakness on the daily interval.

On the daily interval, the market is trading within a balanced price range, and traders are leaning on the mentioned extremes. Currently, the market seems to be leaning towards the upper extreme.

3 Weeks Ago

The current volume profile is displaying a b-shaped structure, which suggests a potential bullish scenario if the market opens or breaks above the particular value area. However, the swing lows still might be targeted for absorption purposes.

More By This Author:

Chinese Stocks Slip As Manufacturing Contracts, Yuan And Bond Yields Under Pressure
US Stocks Close July With Modest Gains, Dollar Index Faces Monthly Decline
Crude Oil Prices Surge On Tightening Supply And Demand Optimism