OIL OPTIONS: Brent Skew Least Bearish Since Sep. on Declining Put Vols

• The Tick lower in US Yields help keep the pressure on the USDJPY, but the cross is still some way short of the Friday's low at 147.20, so far only managed a 147.80 low.
• Similarly for the US Tnotes, there isn't much in terms of level at current prices, Instead, would look for a test to 4.09%, not a significant level, but would equate to 113.02 in TYZ5.

The trend condition in WTI futures is unchanged - a bear cycle remains intact and the latest recovery is considered corrective. The pullback from the Sep 2 high highlights a possible reversal and the end of a corrective phase between Aug 13 - Sep 2. Initial resistance to watch is $66.03, the Sep 2 high. Key short-term resistance has been defined at $69.36, the Jul 30 high. A stronger resumption of weakness would open $57.71, the May 30 low. Gold remains in a clear bull cycle and short-term pullbacks are for now, considered corrective. A fresh all-time high, once again last week, confirms a resumption of the primary uptrend and an extension of the sequence of higher highs and higher lows. The next objective is $3744.2, a Fibonacci projection. Initial firm support lies at $3577.9, the 20-day EMA. Note that MA studies are in a bull-mode position, highlighting a dominant uptrend.

• WTI Crude up $0.36 or +0.57% at $63.04
• Natural Gas up $0.04 or +1.49% at $2.931
• Gold spot up $35.04 or +0.95% at $3720.5
• Copper up $1.4 or +0.3% at $464.25
• Silver up $0.61 or +1.42% at $43.6868
• Platinum up $16.54 or +1.17% at $1425.4

Eurostoxx 50 futures recently traded through resistance around the 20-day EMA - a bullish development - and the subsequent rally reinforces a bullish theme. The move signals potential for a climb towards 5525.00, the Aug 22 high and a bull trigger. On the downside, key support has been defined at 5302.00, the Sep 2 low. Clearance of this level is required to reinstate a bearish theme. A bull cycle in S&P E-Minis remains intact and the contract traded to a fresh cycle high on Friday. Price has breached the 6700.00 handle and this signals scope for an extension towards 6748.50, a Fibonacci projection point. Moving average studies remain in a bull-mode position, highlighting a dominant uptrend and positive market sentiment. Initial support to watch lies at 6602.01, the 20-day EMA.

• Japan's NIKKEI closed higher by 447.85 pts or +0.99% at 45493.66 and the TOPIX ended 15.49 pts higher or +0.49% at 3163.17.
• Elsewhere, in China the SHANGHAI closed higher by 8.487 pts or +0.22% at 3828.576 and the HANG SENG ended 200.96 pts lower or -0.76% at 26344.14.
• Across Europe, Germany's DAX trades lower by 107.8 pts or -0.46% at 23531.47, FTSE 100 higher by 6.99 pts or +0.08% at 9223.57, CAC 40 down 11.22 pts or -0.14% at 7842.68 and Euro Stoxx 50 down 8.52 pts or -0.16% at 5450.29.
• Dow Jones mini down 117 pts or -0.25% at 46534, S&P 500 mini down 14 pts or -0.21% at 6708.5, NASDAQ mini down 60.5 pts or -0.24% at 24806.25.