Short Term Correction in E-Mini Futures – US Market Market Profile Outlook

E-Mini on the Monday session ended with an uncleared poor high followed by inventory adjustment. The major short-term inventory adjustment happened after the US Inflation numbers. Daily Sentiment turned negative with a G2 High at the All time high + Uncleared Poor High. which signals a short-term top as per the profile structure

US Consumer Price Index

The Consumer Price Index (CPI) exceeded expectations, with core inflation remaining stable at 3.9% versus the predicted 3.7%. Meanwhile, the headline CPI saw a decrease of 0.3 percentage points to 3.1%, falling from the previous month’s 3.4% yet still surpassing the market forecast of 2.9%. Consequently, markets have adjusted their expectations to fully price in an interest rate cut by June.

The consumer price inflation data for January, which came in higher than anticipated on Tuesday, reinforces the message that numerous Federal Reserve officials have been communicating to the market: there is no immediate intent to lower interest rates.

Several Federal Reserve representatives, including Chairman Jerome Powell, have emphasized in the past few weeks their desire for further evidence of sustained inflation reduction towards the 2% yearly goal before considering a decrease in their benchmark interest rate.

Overall it is expected that ES-Mini is likely to test 4950 and 4920 in the short-term term and 4880 in the medium term.