EQUITIES: Bullish E-Mini S&P Theme Intact, Contract Above 20-, 50-Day EMAs
A bull cycle in Eurostoxx 50 futures remains intact. Price has recently cleared the 20- and 50-day EMAs, signalling scope for a stronger recovery. Sights are on 5742.40 next (pierced), the 76.4% retracement of the Nov 13 - 21 bear leg. Clearance of this price point would pave the way for an extension towards 5825.00, the Nov 13 high and a key resistance. First key support lies at 5617.30, the 50-day EMA. A bullish theme in S&P E-Minis is intact and the contract continues to appreciate. Price remains above the 20- and 50- day EMAs. Note that recent gains signal the likely end of the corrective cycle between Oct 30 and Nov 21. A continuation higher would highlight potential for a move towards the key resistance and bull trigger at 6953.75, the Oct 30 high. Key support lies at 6525.00, the Nov 21 low. First support is at 6788.55, the 20-day EMA.
- Japan's NIKKEI closed lower by 536.55 pts or -1.05% at 50491.87 and the TOPIX ended 35.65 pts lower or -1.05% at 3362.56.
- Elsewhere, in China the SHANGHAI closed higher by 27.015 pts or +0.7% at 3902.808 and the HANG SENG ended 149.18 pts higher or +0.58% at 26085.08.
- Across Europe, Germany's DAX trades higher by 98.49 pts or +0.41% at 23980.46, FTSE 100 higher by 17.23 pts or +0.18% at 9727.86, CAC 40 up 20.89 pts or +0.26% at 8142.92 and Euro Stoxx 50 up 15.44 pts or +0.27% at 5733.52.
- Dow Jones mini down 13 pts or -0.03% at 47903, S&P 500 mini up 11.5 pts or +0.17% at 6878.25, NASDAQ mini up 91.75 pts or +0.36% at 25715.25.
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MNI: EUROZONE SEP PPI -0.1% M/M, -0.2% Y/Y (VS -0.4% M/M, -0.6% Y/Y AUG)
- MNI: EUROZONE SEP PPI -0.1% M/M, -0.2% Y/Y (VS -0.4% M/M, -0.6% Y/Y AUG)
COMMODITIES: Gold Off Week's Lows, But Shy of Initial Resistance at $4161.40
WTI futures are unchanged and the contract remains in a corrective cycle for now. Note that price has recently traded through the 50-day EMA, currently at $61.03. The breach of this EMA signals scope for a stronger recovery. Note too that a resistance at $62.34, the Oct 8 high, has also been pierced. A clear move through it would expose key resistance at $65.77, the Sep 26 high. First key support and the bear trigger is unchanged at $55.96, the Oct 20 low. A fresh cycle low last week in Gold highlights an extension of the bear cycle that started Oct 20. The retracement since Oct 20 has allowed an overbought trend condition to unwind. The 20-day EMA has been breached, signalling scope for a test of the 50-day EMA, at $3867.3. Clearance of this EMA would strengthen a short-term bear theme. Initial resistance is at $4161.4, the Oct 22 high.
- WTI Crude up $0.3 or +0.5% at $60.88
- Natural Gas down $0.12 or -2.65% at $4.228
- Gold spot up $38.19 or +0.97% at $3971.07
- Copper down $1.75 or -0.35% at $493.05
- Silver up $0.63 or +1.33% at $47.7921
- Platinum down $0.59 or -0.04% at $1539.74
EQUITIES: E-Mini S&P Remains Above Key Pivot Support at 50-Day EMA
Recent weakness in Eurostoxx 50 futures appears to have been corrective. The contract has found support ahead of the 50-day EMA, at 5571.03. Support below the EMA lies at 5555.00, the base of a bull channel drawn from the Aug 1 low. A breach of this level and the 50-day EMA, is required to highlight a stronger reversal. Sights are on resistance and the bull trigger at 5742.00, the Oct 29 high. The trend condition in S&P E-Minis is unchanged, it remains bullish and the latest pullback appears corrective. Support at the 20-day EMA, at 6803.81, has been breached. A clear break of this average signals scope for a deeper retracement and exposes the 50-day EMA at 6702.18 - a key pivot support. The bull trigger has been defined at 6953.75, the Oct 30 high. Clearance of this hurdle would confirm a resumption of the uptrend.
- Japan's NIKKEI closed lower by 1284.93 pts or -2.5% at 50212.27 and the TOPIX ended 41.85 pts lower or -1.26% at 3268.29.
- Elsewhere, in China the SHANGHAI closed higher by 9.062 pts or +0.23% at 3969.248 and the HANG SENG ended 16.99 pts lower or -0.07% at 25935.41.
- Across Europe, Germany's DAX trades lower by 157.28 pts or -0.66% at 23791.83, FTSE 100 lower by 11.07 pts or -0.11% at 9703.96, CAC 40 down 17.23 pts or -0.21% at 8050.3 and Euro Stoxx 50 down 33.89 pts or -0.6% at 5626.31.
- Dow Jones mini up 13 pts or +0.03% at 47227, S&P 500 mini down 11.25 pts or -0.17% at 6790.5, NASDAQ mini down 81 pts or -0.32% at 25494.25.
