EM LATAM CREDIT: MercadoLibre: Moody's Moves to Watch Pos

Equities had a constructive session Tuesday, with the S&P 500 set to post another record high close. Tech (+0.8% - S&P 500 subsector) and consumer discretionary stocks (+1.0%) outperforming. Consumer stapes (-0.7%) and real estate (-1.0%) lagged.

• Overall it was a tech story again: Tesla led consumer discretionary gains (+5%) as it shared hints that it would unveil a new product Tuesday, and Advanced Micro Devices soared 24% (38% at the high) after announcing a deal to supply OpenAI.
• Futures-wise, S&P Eminis are eyeing next resistance at 6812.29 (2.382 proj of the Aug 20 - 28 - Sep 2 price swing).

Below gives key levels of markets in afternoon NY trade:
- DJIA  down 86.14 points (-0.18%) at 46669.52
- S&P E-Mini Future up 25.5 points (0.38%) at 6789
- Nasdaq up 181 points (0.8%) at 22959.5

Prior European bourses closing levels:
- EuroStoxx 50  down 22.99 points (-0.41%) at 5628.72
- FTSE 100  down 12.11 points (-0.13%) at 9479.14
- German DAX  down 0.51 points (0%) at 24378.29
- French CAC 40  down 109.76 points (-1.36%) at 7971.78

Monday's US rates/bond options flow included:

• TYZ5 114/116cs, bought for 13 in 5k
• SFRX5 96.43c, sold at 1.75 in 4k.
• SFRV5 96.31/96.37^^, sold at 1.5 in 2k
• SFRX5 96.25/96.43^^, traded 4.75 in 1.5k.
• SFRZ5 96.31/96.25/96.18p fly, bought for 0.25 in 2k
• SFRZ5 96.56/96.62cs, bought for half in 11k
• SFRZ5 96.25/96.37/96.43/96.56c condor, bought for 6 in 4k.
• SFRZ5 96.50/96.625cs, bought for 1 in 5k (on Block)
• SFRU6/Z6/H7/M7 96.875^, bought for 306.5 in 300 lots
• SFRU6 97.43/97.12/96.81p ladder, traded -0.75 in 5k.
• SFRU6 96.37p, traded for 8.5 in 2.5k.
• 2QZ5 96.50/96.37ps , traded 1.5 in 2k.

• RES 4: 0.6763 1.382 proj of the Jun 23 - Jul 24 - Aug 21 price swing
• RES 3: 0.6726 1.236 proj of the Jun 23 - Jul 24 - Aug 21 price swing
• RES 2: 0.6660/6707 High Sep 18 / 17 and key resistance
• RES 1: 0.6629 High Sep 30 & Oct 01
• PRICE: 0.6617 @ 16:31 BST Oct 6
• SUP 1: 0.6527/21 61.8% of the Aug 21 - Sep 17 bull leg / Low Sep 26 
• SUP 2: 0.6484 76.4% retracement of the Aug 21 - Sep 17 bull leg
• SUP 3: 0.6463/6415 Low Aug 27 / Low Aug 21 / 22 and a bear trigger 
• SUP 4: 0.6373 Low Jun 23

The AUDUSD uptrend remains intact and the pair is trading closer to its recent highs. Support to watch lies at the 50-day EMA, at 0.6560. A clear break of this average would signal scope for a deeper retracement and expose 0.6527 once again, a Fibonacci retracement. For bulls, a stronger reversal higher would refocus attention on 0.6707, the Sep 17 high. Initial resistance to watch is 0.6629, the Sep 30 and Oct 1 high.