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E-Minis On The Defensive Into The NY Cash Open


The post-jobless claims extension of the Tsy cheapening adds some pressure to S&P 500 e-minis, which look though Asia-Pac lows as a result, with bears threatening a clean break of 4,5800 at typing.

  • That comes after a combination of disappointing after-market earnings from the likes of Tesla & Netflix, as well as a negative lead from China, kept the pressure on the space through pre-NY trade, while firmer than expected headline earnings releases from Johnson & Johnson did little to generate support.
  • The soft tech earnings released after market, coupled with downgrade in guidance from semiconductor giant TSMC, means that the NASDAQ 100 leads the weakness in the e-mini space (-0.9%), with the S&P 500 contract also lower (-0.4%), while the DJIA contract is close to unchanged.
  • Post-earnings, pre-market:
  • IBM -1.3%
  • Johnson & Johnson -1.5%
  • Tesla -4.2%
  • Netflix -6.3%
  • Technically, the S&P 500 e-mini saw the rally accelerate further on Wednesday, with prices surging through the top-end of the bull channel drawn off the March 13 low. This marks another positive shift for short-term momentum and clears the way for a test of the March 29 2022 high (4,631.00). Nonetheless, the RSI has now tipped into overbought territory, signalling a slowing of the uptrend could dominate. Any corrective pullback would initially target the 20-day EMA (4,482.32).
MNI London Bureau | +44 0203-865-3809 |

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