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Bull Theme Across Stocks Persists, But Profit-Taking Evident

EQUITY TECHS
  • In the equity space, a bull theme in S&P E-Minis remains intact. This week’s rally has resulted in a break of resistance at 4498.00, the Jun 30 high. The break confirms a resumption of the uptrend and maintains a bullish price sequence of higher highs and higher lows. The contract has also traded through 4500.00 and this opens 4556.71, 1 2.382 projection of the May 4 - 19 - 24 price swing. First firm support lies at 4439.81, the 20-day EMA.
  • EUROSTOXX 50 futures have traded higher this week. The rally has resulted in a move above the 50-day EMA at 4335.00 and price is through 4371.00, the Jul 6 high. Clearance of this latter level highlights a potentially stronger bull cycle and attention is on key resistance and the bull trigger at 4447.00, the Jul 3 high. Key support and the bear trigger has been defined at 4220.00, the Jul 7 low. Initial support is at the 50-day EMA.

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