CHINA PRESS: Regulators Cautious About Rapid Capital Inflows

Sovereign rating reviews of note from after hours on Friday include:

• Fitch affirmed Cyprus at A-; Outlook revised to Positive
• Moody's upgraded Italy to Baa2, outlook stable
• Moody's affirmed the United Kingdom at Aa3, outlook stable
• Morningstar DBRS upgraded Slovenia to AA (low); Stable Trend
• Scope Ratings affirmed Spain at A; Outlook revised to Positive

• RES 4: 93.33 Low Nov 13 a gap high on the daily chart 
• RES 3: 92.70 20-day EMA        
• RES 2: 92.60 High Nov 18 
• RES 1: 92.43 High Nov 21    
• PRICE: 92.33 @ Close Nov 21
• SUP 1: 91.51 Low Nov 20      
• SUP 2: 91.01 High Oct 13 and a gap low on the daily chart
• SUP 3: 91.12 61.8% retracement of the Sep 3 - Nov 4 bull leg   
• SUP 4: 91.01 Low Oct 13   

A sharp sell-off in Gilt futures last Wednesday strengthens a bear threat and cancels a recent bullish condition. The contract has traded through 91.82, the Sep 11 high, and the move down signals scope for a deeper retracement that opens 91.12, a Fibonacci retracement point. On the upside, initial key resistance is seen at 92.70, the 20-day EMA. A clear break of the average is required to signal a reversal. For now, gains are considered corrective.

• RES 4: 5858.59 1.618 proj of the Aug 1 - 22 - Sep 2 price swing   
• RES 3: 5825.00 High Nov 13 and the bull trigger
• RES 2: 5744.00 High Nov 14  
• RES 1: 5633.27 20-day EMA       
• PRICE: 5560.00 @ 06:41 GMT Nov 24
• SUP 1: 5475.00 Low Nov 21    
• SUP 2: 5427.01 61.8% retracement of the Aug 1 - Nov 13 bull cycle  
• SUP 3: 5383.00 Low Sep 18 
• SUP 4: 5366.00 Low Sep 17      

Last week’s sell-off in EUROSTOXX 50 futures highlights a stronger corrective cycle. The contract has breached two key support points; 5597.64, the 50-day EMA, and 5626.50, the base of a bull channel drawn from the Aug 1 low. The breach signals scope for a deeper pullback and opens 5427.01, a Fibonacci retracement. Initial firm resistance to watch is 5633.27, the 20-day EMA.