E-Mini S&P RSI Tips into Overbought Territory

Eurostoxx 50 futures traded higher last week. The rally 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. The rally accelerated in E-Mini S&P further still Wednesday, with prices surging through the top-end of the bull channel drawn off the March 13th low at 4608.50. This marks another positive shift for S/T momentum and clears the way for a test of the March 29th 2022 high at 4631.00 and - ultimately - all time highs. Nonetheless, the RSI has now tipped into overbought territory, signalling a slowing of the uptrend could dominate to alleviate the condition over the coming few sessions. Any corrective pullback would initially target the 20-day EMA at 4482.32 for support.

• Japan's NIKKEI closed lower by 405.51 pts or -1.23% at 32490.52 and the TOPIX ended 18.07 pts lower or -0.79% at 2260.9.
• Elsewhere, in China the SHANGHAI closed lower by 29.314 pts or -0.92% at 3169.522 and the HANG SENG ended 24.29 pts lower or -0.13% at 18928.02.
• Across Europe, Germany's DAX trades higher by 59.54 pts or +0.37% at 16163.45, FTSE 100 higher by 53.74 pts or +0.71% at 7645.85, CAC 40 up 29.42 pts or +0.4% at 7361.89 and Euro Stoxx 50 up 4.01 pts or +0.09% at 4364.53.
• Dow Jones mini up 49 pts or +0.14% at 35300, S&P 500 mini down 6 pts or -0.13% at 4590.5, NASDAQ mini down 125.5 pts or -0.79% at 15834.25.