EQUITIES: Eurostoxx 50 Futures Recover Moderately From Thursday's Lows
Eurostoxx 50 futures maintain a softer tone and the contract traded lower yesterday. Recent weakness has resulted in a breach of the 50-day EMA, at 5293.56. Price has also traded through 5255.00, the May 23 low. A clear break of both support points signals a S/T top and highlights scope for a deeper retracement. Sights are on 5178.00, the May 6 low and 5081.16, a Fibonacci retracement. Initial resistance is 5333.37, the 20-day EMA. The trend condition in S&P E-Minis remains bullish. For now, the most recent shallow pullback is considered corrective. The contract has pierced support at 6006.73, the 20-day EMA. A clear breach of this average would suggest potential for a deeper retracement and expose the 50-day EMA, at 5902.27. Key short-term resistance and the bull trigger has been defined at 6128.75, the Jun 11 high.
- Japan's NIKKEI closed lower by 85.11 pts or -0.22% at 38403.23 and the TOPIX ended 20.82 pts lower or -0.75% at 2771.26.
- Elsewhere, in China the SHANGHAI closed lower by 2.212 pts or -0.07% at 3359.896 and the HANG SENG ended 292.74 pts higher or +1.26% at 23530.48.
- Across Europe, Germany's DAX trades higher by 154.44 pts or +0.67% at 23212.6, FTSE 100 higher by 29.26 pts or +0.33% at 8820.99, CAC 40 up 36.74 pts or +0.49% at 7590.19 and Euro Stoxx 50 up 35.54 pts or +0.68% at 5232.57.
- Dow Jones mini down 106 pts or -0.25% at 42082, S&P 500 mini down 19.75 pts or -0.33% at 5961.75, NASDAQ mini down 68.25 pts or -0.31% at 21652.
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COMMODITIES: WTI Futures Trade to Fresh Short-Term Cycle High
- WTI futures have traded to a fresh short-term cycle high today and maintain a bullish theme. However, the recovery since Apr 9, still appears corrective. Key resistance to watch is $62.87, the 50-day EMA. It has been pierced, a clear break of it would highlight a stronger reversal. This would open $65.82, the Apr 4 high. For bears a reversal lower would refocus attention on $54.33, the Apr 9 low and bear trigger.
- Gold has recovered from its recent lows and is trading higher today. The climb signals the end of the corrective phase between Apr 22 - May 15. Medium-term trend signals remain bullish - moving average studies are in a bull-mode position highlighting a dominant uptrend. A continuation would open $3435 next, the May 7 high. Key support and the bear trigger has been defined at $3121.0, the May 15 low.
EQUITIES: Bullish Trend Condition in E-Mini S&P Remains Intact
- A bullish theme in Eurostoxx 50 futures remains intact and price is trading at its recent highs. The contract is extending the recent breach of 5263.01, 76.4% of the Mar 3 - Apr 7 bear leg, and maintains the sequence of higher highs and higher lows. Sights are on 5516.00, the Mar 3 high and the key bull trigger. Key support to watch lies at 5201.23, the 50-day EMA. Clearance of this level would signal a possible reversal.
- A bullish trend condition in S&P E-Minis remains intact and the contract is trading closer to its recent highs. An important resistance at 5837.25, the Mar 25 high and a bull trigger, has been cleared. This has strengthened the current bullish theme, and paves the way for a continuation near-term. Sights are on the 6000.00 handle next. Initial firm support to watch lies at 5703.54, the 50-day EMA.
UK DMO UPDATE: Gilt Auction Bidding Window Extended
The DMO announced that "due to the ongoing market-wide Bloomberg system issues, the bidding window for this morning's auction of the 4% 2031 is being extended. We expect the close time of the auction bidding window to be 11:30am, subject to Bloomberg systems issues being resolved. The UK Debt Management Office will share further details as soon as possible"
