US 10YR FUTURE TECHS: (Z5) Corrective Pullback

• RES 4: 177.08 2.000 proj of the Feb 28 - Mar 18 - Apr 7 price swing 
• RES 3: 175.43 High Jul 11 ‘24 and a key medium-term resistance
• RES 2: 174.86 1.764 proj of the Feb 28 - Mar 18 - Apr 7 price swing
• RES 1: 173.97 High Jul 28 and the bull trigger 
• PRICE: 172.38 @ 16:32 BST Aug 19
• SUP 1: 170.19 50-day EMA
• SUP 2: 169.73/45 Low Jul 31 / 23.6% of the Feb 28 - Jul 28 bull leg
• SUP 3: 168.46 Low Jul 1  
• SUP 4: 167.46 Low Jun 23   

The underlying bull trend in EURJPY is intact and for now the recent move down appears to have been a correction. Key support to watch lies at the 50-day EMA at 170.19. A clear break of the EMA is required to highlight a stronger short-term bearish threat. Moving average studies remain in a bull-mode position highlighting a primary uptrend. A break of the Jul 28 high of 173.97, would resume the bull cycle.  

• Stocks continued to extend session lows late Tuesday as the US$ climbed to one week highs (BBDXY +2.71 at 1207.33). Currently, the DJIA trades down 62.57 points (-0.14%) at 44847.07, S&P E-Minis down 43.75 points (-0.68%) at 6425, Nasdaq down 319.9 points (-1.5%) at 21308.83.
• Information Technology and Communication Services sectors continued to underperform in the second half, the former weighed by Palantir Technologies -9.02%, Oracle Corp -5.30%, Advanced Micro Devices -4.90%, First Solar -4.58% and Super Micro Computer -4.58%.
• The Communication Services sector was weighed by: Trade Desk -4.48%, Warner Bros Discovery -2.66%, Netflix -2.47% and Meta Platforms -1.79%.
• On the positive side, Real Estate, Consumer Staples and Health Care sectors continued to outperform. Investment trust stocks supported the former following this morning jump in (albeit volatile) Housing Starts data: Prologis +4.07%, Federal Realty Investment Trust +2.33%, Kimco Realty +1.97% and Weyerhaeuser +1.73%.
• Supporting Consumer Staples stocks included: Philip Morris Int +1.42%, Procter & Gamble +1.40% and PepsiCo +1.40%. Meanwhile, pharmaceuticals buoyed the Health Care sector in late trade: Molina Healthcare +2.76%, Baxter International +2.29% and Labcorp Holdings +2.18%.

• Crude prices have lost ground today as the market weighs the outlook for a ceasefire/peace deal in Ukraine and possible trilateral talks between the US, Ukraine and Russia.
• WTI Sep 25 is down by 1.6% at $62.4/bbl.
• A meeting between Zelenskyy and Putin could happen before the end of August, with another including Trump to occur thereafter.
• WTI futures remain in a clear bear cycle, and the contract is trading closer to its recent lows. A key support at $61.99, the Jun 30 low, was recently breached, strengthening a bearish theme.
• A continuation lower would open $57.71, the May 30 low.
• Meanwhile, spot gold has fallen by 0.4% to $3,318/oz, as the USD index tilted back into positive territory late in the session, amid the cautious risk-off mood.
• A bull cycle in gold remains intact and the sideways trend that has been in place since the April peak appears to be a corrective phase - a pause in the uptrend.
• A resumption of gains would open $3,439.0, the Aug 23 high. On the downside, first support to watch lies at $3,268.2, the Jul 30 low.
• Copper has also fallen by 1.0% today to $449/lb.
• The sharp reversal down from the Jul 30 high cancels a recent bullish theme and instead highlights a bearish threat. A continuation lower would signal scope for a test of key support at $418.85, the Apr 7 low.