EQUITY TECHS: E-MINI S&P: (U5) Corrective Pullback

Gilts trade back from session highs that were registered around midday London time, with the previously covered downtick in Tsys providing some light pressure in more recent trade.

• That came after a downtick in crude oil prices and solid demand at this morning’s gilt auction factored into a recovery from lows.
• The rally from low in futures failed to get anywhere near closing the opening gap lower, which has negated some of the recent bullish momentum.
• Contract last -48 at 91.64, with yesterday’s boundaries continuing to provide initial support and resistance.
• Intraday bear steepening theme intact, yields 3-6bp higher. 5s30s remains on track for a fresh cycle closing high, last ~143bp.
• Flash PMI data headlines the UK calendar on Thursday.

• RES 4: 6439.88 1.500 proj of the May 23 - Jun 11 - 23 price swing
• RES 3: 6402.44 1.382 proj of the May 23 - Jun 11 - 23 price swing
• RES 2: 6381.50 1.764 proj of the Apr 7 - 10 - 21 price swing
• RES 1: 6374.00 High Jul 21      
• PRICE: 6366.00 @ 14:31 BST Jul 23  
• SUP 1: 6288.25 Low Jul 17  
• SUP 2: 6264.70/6120.59 20- and 50-day EMA values   
• SUP 3: 6075.25 Low Jun 24
• SUP 4: 5959.00 Low Jun 23  

S&P E-Minis have traded to a fresh cycle high this week. The climb confirms a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Note that moving average studies are in a bull-mode position highlighting a clear dominant uptrend. Sights are on 6381.50, a Fibonacci projection. Key support is at the 50-day EMA, at 6120.59. Support at the 20-day EMA is at 6264.70.

• -2,000 2QQ5/2QU5 96.37 puts, 1.75 ref 96.77
• -5,000 0QU5 97.50/98.50 call spds vs. 2QU5 97.50/98.00 call spds, 0.75 flattener
• -5,000 0QU5/2QU5 97.50/98.50 call spds, 0.75
• -4,000 SFRQ5/SFRU5 96.00 call spds, 1.25 ref 95.835
• Update: earlier Block/screen reduced back to +44,265 SFRQ5 95.62 put, cab (had been 103k earlier)