UK: Chancellor Survives Letting Revelations, Keeping Budget On Track

SX5E (19th June) 6000/6500cs 1x4, bought for 17.10 and 17.50 in 5k (5kx20k).

• In the equity space, a bull cycle in S&P E-Minis remains intact. Key short-term resistance has been defined at 6756.75, the Sep 22 high where a break would resume the primary uptrend. This would open 6787.63, the 1.382 projection of the Aug 1 - 15 - 20 price swing. On the downside, initial support to watch lies at the 20-day EMA, at 6656.22. It has been pierced, a clear break of it would signal scope for a deeper retracement, potentially towards the 50-day EMA, at 6541.51.
• EUROSTOXX 50 futures maintain a bullish theme. This week’s gains have resulted in a breach of key resistance and the bull trigger at 5525.00, the Aug 22 high. The break confirms a resumption of the uptrend and paves the way for a climb towards 5564.82, a 0.764 projection of the Aug 1 - 22 - Sep 2 price swing, and 5575.00, the Mar 3 high (cont.) and a key resistance. Initial firm support lies at 5452.19, the 20-day EMA.

OI data points to a mix of long setting (TU), short cover (FV) & short setting (TY through WN) as the Tsy curve twist steepened on Tuesday, with the latter dominating, accounting for an $11.3mln DV01 equivalent shift in net positioning.