OAT: Updated Yield Levels

Destatis has released its monthly data for August for its truck toll index, which printed -2.3% on a sequential comparison, exactly reversing the July rise (+2.3%). This tentatively points towards some weakness in industrial production last month after the manufacturing component of yesterday's IP release saw some strength (+2.2% M/M).

• For a comparison of the two indices on an index level, see chart below.

• MNI: FRANCE JUL IND PROD -1.1% M/M, +1.3% Y/Y (VS +3.7% M/M, +2.2% Y/Y JUN)
• FRANCE JUL MANUF OUTPUT -1.7% M/M, +1.5% Y/Y (VS +3.5% M/M, +2.6% Y/Y JUN)

• RES 4: 6610.98 2.0% 10-dma envelope
• RES 3: 6600.00 Round number resistance
• RES 2: 6543.75 2.00 proj of the Apr 7 - 10 - 21 price swing  
• RES 1: 6541.75 High Sep 5  
• PRICE: 6516.25 @ 07:24 BST Sep 9
• SUP 1: 6456.35/6371.75 20-day EMA / Low Sep 2 
• SUP 2: 6359.10 50-day EMA 
• SUP 3: 6313.25 Low Aug 6 
• SUP 4: 6239.50 Low Aug 1 and a key support

A bull cycle in S&P E-Minis remains intact and the latest pullback has once again proved to be a shallow correction. The contract traded to a fresh cycle high last week, breaching the Aug 28 high of 6523.00. This confirms a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Sights are on 6543.75 next, a Fibonacci projection. Initial support to watch is 6456.35, the 20-day EMA.