E-Minis Biased A Little Lower Pre-Cash Open

U.S. equity futures trade around worst levels of the day at print, although S&P 500 e-minis remain comfortably within the range established on Tuesday, -10 or so at 4,585. A negative lead from Europe has definitely factored into pre-NY price action.

• Domestically, mixed earnings from big tech names and fresh questions surrounding the regional bank sector in light of the Banc of California-PacWest merger provided the key touch points after hours on Tuesday, while pre-market earnings releases have included mixed numbers from AT&T (although they remain confident re: achieving FY guidance), firmer than expected headline prints from Coca Cola (triggering an upgrade of FY guidance), while Boeing’s headline metrics provided a beat.
• The FOMC decision presents the key macro risk event today, while notable after hours earnings come from Meta (see our full weekly earnings calendar here)
• Technically, the S&P 500 e-mini remains in bull mode and is trading just below last week’s high of 4,609.25. The contract has recently tested the top of the bull channel drawn off the March 13 low - the top intersects at 4,627.50 today. A clear channel breakout would strengthen bullish conditions and open 4,631.00, the Mar 29 2022 high. A corrective pullback would initially target the 20-day EMA at 4,514.78.