U.S stocks have kicked off the day in the red as traders limit risk ahead of this afternoon’s FOMC Minutes release. For the first half-hour of trade, the DJIA DOW (-50), S&P 500 SPX (-5), and NASDAQ (-12) are negative. While the belief on Wall Street is that we will see an accommodative FOMC, the focus will be on whether a late-year rate cut is in the cards for the Greenback.

During the early U.S. pre-market hours, MBA Mortgage Applications (May 13) was released to the public. The figure came in at 2.4%, shattering the previous release of -0.6%.

As we roll into the summer months, real estate is going to be a key metric to watch in regards to the aggregate U.S. economy. For now, median home prices are falling, with the pool of potential buyers growing. The situation is interesting; if the availability of home loans remains relatively high, it could be a banner year for U.S. real estate.

S&P 500 Slumps Ahead Of FOMC Minutes

June E-mini S&P 500 futures are rangebound in anticipation of the pending FOMC Minutes release. Prices have settled into a two-day consolidation pattern in the vicinity of 2850.00.

At press time (10:00 AM EST), this market is in heavy rotation with few technical levels to watch on the daily time frame. Topside resistance at the Bollinger MP (2874.50) is pretty much the only one. While a breakout from Tuesday’s extremes is a possibility, it is improbable with the FOMC Minutes on deck.

Bottom Line: Until the FOMC Minutes drop at 2:00 PM EST, I will be looking to scalp the June E-mini S&P 500 to the short from beneath the Bollinger MP. Sells from 2873.75 with an initial stop at 2875.50 should yield a quick 7 ticks. Using a static 1:1 risk vs reward management plan, this trade is an affordable way to play the pre-FOMC action.