E-Minis Biased A Little Lower Into Cash Open

The move higher in Tsy yields covered elsewhere has applied fresh headwinds to e-minis as we move towards the cash equity open.

• The 3 major e-mini contracts shed 0.2-0.4% vs. settlement, with the NASDAQ 100 contract leading the move lower as fresh session lows are registered at typing.
• Technically, a bear cycle in the S&P 500 e-mini contract remains in play. Last Friday’s strong sell-off reinforces this theme and suggests the recent shallow correction higher, is over. Key short-term support has been defined at 4,483.25, the Sep 7 low. Clearance of this level would be a bearish development and open 4,397.75, the Aug 18 low and a bear trigger. For bulls, a resumption of gains would instead open 4,597.50, the Sep 1 high.
• Stock specific news has seen tech giant Microsoft boost its dividend by 10%.
• Deere indicated lower after Evercore lowered the name to inline from outperform.
• Starbucks indicated lower after similar brokerage guidance change at TD Cowen.
• Instacart priced its IPO at the upper end of the expected range, with trading set to start today.
• Elsewhere, feedthrough from the ongoing UAW strikes will be eyed. Note that the UAW president has flagged the potential for fresh strikes if the talks see no serious progress by noon (NY time) on Friday.