E-Minis Heavy Ahead Of NY Cash Open

E-minis are on the defensive with the post-FOMC/U.S. data move higher in yields applying weight.

• Market focus on some of the more hawkish takeaways from Fed Chair Powell’s post-meeting address and the higher for longer narrative have been the key drivers.
• The 3 major contracts are 0.5-1.2% softer, with the NASDAQ 100 leading the move.
• The S&P 500 contract is ~90 points below pre-Fed levels.
• In stock specifics, FedEx beat on EPS but missed on revenue, while the bottom end of existing EPS guidance was lifted and the company raised it FY24 revenue growth view. The name bucks the broader trend and shows 4.9% higher pre-market, with buyback headlines also helping.
• Broadcom struggle’s pre-market (showing 6.1% lower) after sources speaking to the Information suggested that “Google executives have extensively discussed dropping Broadcom as a supplier of artificial intelligence chips as early as 2027.”
• Technically, a bear cycle in S&P 500 e-minis remains in play and this week’s break lower reinforces current conditions. Support at 4,483.25, the Sep 7 low, has been breached, confirming a resumption of the bear leg that started Sep 1. A continuation lower would expose 4,397.75, the Aug 18 low and the next key support. Initial key resistance has been defined at 4,566.00, the Sep 15 high. A break of this level would be seen as a bullish development.