E-Minis A Touch Higher Into NY Cash Open, After Recovering Alongside Tsys

Yield gyrations have once again been at the fore in pre-cash e-mini trading, with fresh multi-month lows in the S&P 500 contract seen around the time that 30-Year Tsy yields briefly showed above 5.00%.

• Still, global core FI has moved away from session cheaps, with a softer than expected round of ADP employment data adding a further layer of support from a yield perspective (outside of any impact on the soft-landing debate).
• The 3 major e-mini futures are 0.1-0.3% higher than settlement, with the NASDAQ 100 outperforming and the DJIA lagging.
• Most of the pre-market stock-specific headline flow has centred on brokerage moves.
• The one notable exception was yesterday’s after-hours announcement from Intel re: the spin out of its programmable chip unit business, with the company aiming for an IPO of the unit in the next 2-3 years. The name is indicated ~2.5% higher pre-market.
• Technically, a bear cycle in S&P 500 e-minis remains in play. The contract traded lower yesterday, confirming a resumption of the bear leg and maintaining the price sequence of lower lows and lower highs. This signals scope for weakness towards 4,194.75, the May 24 low. Pivot resistance is 4,453.89, the 50-day EMA. Ahead of the 50-day average is resistance at 4,401.10, the 20-day EMA.