E-Minis Firm On Debt Ceiling Developments & China/HK Bid

E-minis are biased higher pre-NY, with the previously outlined afternoon session bid in Chinese/HK equities and enough progress in background discussions re: the U.S. debt ceiling to trigger the tabling of a Tuesday meeting between President BIden & Congressional leadership figures (albeit with Biden indicating that talks are “not there, yet”) at the fore. The S&P 500 contract is 0.3% better off, a little shy of session bests. The contract has pared a chunk of Friday’s UoM inflation expectations- and regional bank worry-inspired losses.

• Our technical analyst has noted that S&P 500 e-minis remain in consolidation mode and continue to trade above the 50-day EMA, which intersects at 4,107.61. An extension higher would refocus attention on key resistance and the bull trigger at 4,206.25, the May 1 high. Key support has been defined at 4,062.25, the May 4 low. A move through this support would instead highlight a bearish threat.