E-Minis Off Lows Post-CPI, Marginally Lower Ahead Of Cash Open

Negative moves in Chinese & European benchmark equity indices biased e-mini futures lower in pre-NY trade, as the post-Apple event weakness extended a touch.

• In line to firmer-than-expected U.S. CPI data then resulted in fresh session lows, before the ‘low’ nature of the beats seen allowed e-minis to stabilise off post-data lows.
• That leaves the major contracts 0.1% lower ahead of the cash open.
• At a granular level, Apple adds 0.5% pre-market, with China denying speculation re: a ban on iPhones at some government agencies, although it did flag unspecified security concerns surrounding the product.
• Moderna adds over 6% pre-market, on the back of revenue guidance surrounding new products.
• U.S. airlines were pressured after American Airlines lowered profit guidance.
• For now, gains in the S&P e-mini contract are considered corrective and a bear cycle remains in play. Key resistance has been defined at 4,597.50, the Sep 1 high where a break is required to reinstate the recent bullish theme. A stronger resumption of weakness would signal scope for a move towards the key support and bear trigger at 4,397.75, the Aug 18 low. Clearance of this support would strengthen a bearish case.