US Futures Gain While Twitter Shares Pressured: Market Update

U.S Futures rose with the E-mini S&P 500 up by about 0.7% and traded around 4047 in the European trading session. The market got balanced after the hawkish comments from the Fed Chair Jerome Powell which brought the Futures to tumble for around two days.

Banking, mega cap growth and technology stocks led while shares of Twitter fell after Elon Musk cited whistle-blower claims as a new reason to terminate the $44 billion takeover of the company.

Upcoming data includes the CB Consumer confidence and JOLTS due to release today. The VIX is around minus 3.2%, giving the market a slight bearish nuance. The yield and dollar index fell which may be supportive for the commodities while gold slipped about 0.4% and Crude oil dropped 2.4%.

Meanwhile, the economic sentiment indicator (ESI) in the Euro Area fell to 97.6 in August and Germany’s inflation rose to 7.9% vs 7.5% previously while the monthly data shows an easing towards 0.3% vs 0.9%.

The euro might be pressured by the data while the rate against the dollar is up by about 0.2%, testing the week’s upper value extreme for euro longs. In case of a drop the rate may find support around $0.9988 which is the week’s VWAP.

The CME:ES Futures contract trades above the week’s developing value area with a slight imbalanced slope to the bullish side. The prior VWAP close level around 4037 might be of support for buyers as well as the lower value extreme of the weekly perspective. Currently the Futures lurking for buyers around the week’s DVAH level.

The daily interval found buyers around the Quarter’s developing VWAP for potential bullish bias into the New York trading session while the prior swing highs served as absorption area for a reversal currently. 

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Global Equities Pressured By Hawkish Perspective: Market Update

The global equities sector got under pressure as the E-mini S&P 500 fell by about 1.8%, Nasdaq dropped by 2.3% and the Dow Jones is 1.5% in the red as investors are concerned about the hawkish comments by Fed policymakers and worries about a recession. The likelihood of an interest rate hike of about 75bps in the next FOMC meeting might be higher now. High-performing technology stocks got under pressure with Microsoft, Amazon, Alphabet, Facebook, Tesla, and Apple as well. Traders seemingly looking forwards to the Fed Chair Jerome Powell’s speech at the central bank’s annual Jackson Hole economic symposium to conclude further scenarios on the U.S economic front.

However, the recent COT reports shows that Asset Managers and Institutional traders were short covering about 57.512 contracts of CME:ES Futures while new long positions of about 23.084 were opened. The total net positions increased to the buying side, giving the market a potential bullish touch for the upcoming week.

Net hold long postions rises while shorts decreasing

Looking at the current macro perspective on a monthly interval we can see sellers around the Year’s developing VWAP which are pressured with the mentioned economic concerns. The hourly interval heading lower towards the mean of the previous distribution or balanced price range which might serve as a supportive level for buyers, depending on the auction around it. Meanwhile, the dollar index surged about 0.6% with the yield up about 1.3%, hitting the 3% level by the hawkish perspective which may pressure the commodities sector such as Gold (-0.7%).

Mean of prior balanced price range might be supportive for buyers.

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