EQUITIES: Short-Term Pullbacks in E-Mini S&P Considered Corrective
Eurostoxx 50 futures maintain a firmer tone following recent gains. The move higher undermines a recent bearish theme. Price has traded through the 50-day EMA, at 4878.04. The clear breach of this average strengthens a bullish theme and note that 4961.00, the Nov 6 high, has also been cleared. This opens 5015.00, the Oct 29 high. Key support is 4699.00, the Nov 19 low. Initial support lies at 4870.94, the 20-day EMA. The S&P E-Minis contract maintains a bullish tone and short-term pullbacks are considered corrective. Recent gains confirm a resumption of the uptrend and signal scope for a continuation near-term. Note that moving average studies are in a bull-mode set-up, highlighting a dominant uptrend and positive market sentiment. Sights are on 6145.26, a Fibonacci projection. Initial support to watch lies at 6014.79, the 20-day EMA.
- Japan's NIKKEI closed higher by 207.08 pts or +0.53% at 39367.58 and the TOPIX ended 6.85 pts higher or +0.25% at 2741.41.
- Elsewhere, in China the SHANGHAI closed higher by 20.127 pts or +0.59% at 3422.661 and the HANG SENG ended 102.81 pts lower or -0.5% at 20311.28.
- Across Europe, Germany's DAX trades lower by 20.27 pts or -0.1% at 20325.88, FTSE 100 lower by 48.16 pts or -0.58% at 8303.99, CAC 40 down 44.3 pts or -0.59% at 7435.84 and Euro Stoxx 50 down 18.9 pts or -0.38% at 4966.56.
- Dow Jones mini down 48 pts or -0.11% at 44432, S&P 500 mini down 8 pts or -0.13% at 6058, NASDAQ mini down 29.25 pts or -0.14% at 21455.75.
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JGB TECHS: (Z4) Bounce Reverses
- RES 3: 149.55 - High Mar 22 (cont)
- RES 2: 147.74 - High Jan 15 and bull trigger (cont)
- RES 1: 146.53 - High Aug 6
- PRICE: 143.70 @ 16:14 GMT Nov 08
- SUP 1: 143.39 - Low Nov 07
- SUP 2: 142.23 - Low Jul 02
- SUP 3: 140.21 - 1.236 proj of Mar 22 - Nov 1 ‘23 - Jan 15 price swing
Prices fell further Thursday, extending the recent pullback. The return lower at the start of this week has culminated in a break of 143.57, marking both the Jul 17 high on the continuation contract as well as the Oct 22 low. For now, the 50-dma tops out at 144.32, and marks first resistance. A continuation higher would open 146.53, the Aug 6 high (cont) and a bull trigger.
US TSY FUTURES: BLOCK: Late 2Y/10Y Ultra-Bond Flattener
- Flattener crossed late Friday at 1645:30ET, DV01 $322,000
- -8,900 TUZ4 102-23.88, sell through 102-24.38 post time bid vs.
- +3,700 UXYZ4 113-16, post time offer
USDCAD TECHS: Trend Needle Points North
- RES 4: 1.4179 2.0% 10-dma envelope
- RES 3: 1.4000 Round number resistance
- RES 2: 1.3977 High Oct 13 and a key M/T resistance
- RES 1: 1.3959 High Nov 1 / 6
- PRICE: 1.3910 @ 16:29 GMT Nov 8
- SUP 1: 1.3836/22 20-day EMA and a key S/T support / Low Nov 6
- SUP 2: 1.3744 50-day EMA
- SUP 3: 1.3611 Low Oct 8
- SUP 4: 1.3567 Low Oct 7
USDCAD reversed course Wednesday and recovered from Tuesday's low. The trend outlook is unchanged, it remains bullish. Attention is the key resistance at 1.3946, the Aug 5 high. This hurdle has been pierced, a clear break would strengthen the uptrend and open 1.3977, the Oct 13 high and a key medium-term resistance point. Initial firm support to watch lies at 1.3836, the 20-day EMA.
