E-Minis Around Best Levels Into NY Cash Open, Less Inflation Worry & Softer USD Supports

The 3 major e-mini futures add around 0.4% pre-market, operating at/around best levels of the session ahead of the NY cash equity open. The S&P 500 contract has reclaimed 4,500.

• Lower crude oil prices and softer than expected UK data has removed some of the inflation worry via a macro lens.
• That, coupled with a softer USD (in BBDXY terms), has supported the space.
• Technically, a bear cycle in S&P 500 e-minis remains in play and yesterday’s break lower reinforces current conditions. The contract has breached support at 4,483.25, the Sep 7 low. This confirms a resumption of the bear leg that started Sep 1. A continuation lower would expose 4,397.75, the Aug 18 low. Initial key resistance has been defined at 4,566.00, the Sep 15 high. Clearance of this level would instead reinstate a bullish theme exposing 4,597.50, Sep 1 high.
• BofA lifted it’s year-end S&P 500 forecast to 4,600 (prev. 4,300).
• Looking into stock specifics, Boeing lifted its long-run Chinese demand forecast.
• Meanwhile, Dollar General struggles pre-market (-2%) after a brokerage downgrade to underweight at JPM.
• Instacart is indicated 4% lower after yesterday’s double-digit post-IPO gains.
• UAW matters remain of interest, with several regional member groups urging union leadership to hold firm re: demands.
• The latest FOMC decision provides the focal point for global markets today.