EQUITY TECHS: E-MINI S&P: (Z5) Bull Cycle Intact

• RES 4: $77.85 - 2.794 proj of the Apr 9 - 23 - May 5 price swing
• RES 3: $75.65 - 2.500 proj of the Apr 9 - 23 - May 5 price swing
• RES 2: $74.25 - High Jun 23 and a bull trigger 
• RES 1: $63.84/69.36 - 50-day EMA / High Jul 30 and key resistance   
• PRICE: $63.83 @ 07:19 BST Aug 25
• SUP 1: $61.29 - Low Aug 13
• SUP 2: $57.71 - Low May 30
• SUP 3: $54.80 - Low May 5
• SUP 4: $54.03 - Low Apr 9 and a key support

A bear cycle in WTI futures remains intact and recent short-term gains appear corrective - for now. A key support at $61.99, the Jun 30 low, has been breached, strengthening a bearish theme. A continuation lower would open $57.71, the May 30 low. Key short-term resistance has been defined at $69.36, the Jul 30 high. Clearance of this level would cancel a bear theme. Initial resistance to watch is $63.84, the 50-day EMA.

• Bund futures have drifted lower in pre-European trading and at the time of writing are 26 ticks lower than Friday's official close and have returned to similar levels seen before Fed Chair Powell's prepared remarks were published at 15:00BST on Friday at 129.18 at the time of writing. 10-year Bund yields are up 2.2bp at 2.744%.
• As noted in our previous bullet there was nothing relevant for near-term monetary policy from ECB's Lagarde at Jackson Hole (nor really from BOE's Bailey or BOJ's Ueda).
• From a technical perspective, a bear threat is present and a clear breach of 128.84, the Jul 25 low and a bear trigger would open 128.40 initially, the Apr 9 low. Strength above the 50-day EMA of 129.83, is required to signal a reversal. Near-term resistance at the 20-day EMA is at 129.51.
• With the UK bank holiday today (closing UK fixed income and equity markets) volumes are expected to remain on the light side today.
• We will receive a couple of potentially interesting data points today, however, with the German IFO the most notable (9:00BST / 10:00CET) with Spanish PPI and Belgian business confidence both also scheduled.
• However, it is later in the week that the data calendar gets much busier with the most notable releases being French, Spanish, German and Italian flash HICP all due (as well as US GDP on Thursday and PCE on Friday).
• Today will see auctions from both the EU and Belgium while we are also likely to get an ESM syndication today or tomorrow (RFP was sent last week). We also wouldn't rule out an Austrian mandate today, with the potential for a transaction any time between now and mid-October.

• RES 4: $3547.9 - 1.764 proj of the Feb 28 - Apr 3 - Apr 7 price swing
• RES 3: $3500.1 - High Apr 22 and bull trigger
• RES 2: $3451.3 - High Jun 16  
• RES 1: $3409.2/3439.0 - High Aug 8 / 23             
• PRICE: $3367.7 @ 07:19 BST Aug 25
• SUP 1: $3311.6/3268.2 - Low Aug 20 / Low Jul 30 
• SUP 2: $3248.7 - Low Jun 30 and the bear trigger
• SUP 3: $3204.7 - Low May 20
• SUP 4: $3121.0 - Low May 15 and key support 

The medium-term trend condition in Gold remains bullish - moving average studies are in a bull-mode position highlighting a dominant uptrend. The sideways direction that has been in place since the Apr peak appears to be a pause in the uptrend. A resumption of gains would open $3439.0, the Aug 23 high. Key resistance and the bull trigger is at $3500.1, the Apr 22 low. On the downside, first key support to watch lies at $3268.2, the Jul 30 low.