E-Minis A Touch Cheaper Ahead Of Cash Open

Broader yield swings seemed to have been in the driving seat for e-minis since London trade got underway, after an uptick for the Hang Seng biased e-minis firmer in the first half of Asia-Pac dealing (although that move faded into the HK close given wider swings in risk appetite).

• The recent move lower in Tsy yields, with the space working off session cheaps, represents a retracement of the cheapening that came alongside the weekly jobless claims prints.
• This has helped minis to stabilise a little above session lows, with the three major contracts showing 0.3% lower ahead of the cash open.
• Oil market swings have also been eyed, with an extension of the recent move lower noted.
• Technically, a bear cycle in S&P 500 e-minis remains in play. The contract traded lower yesterday, confirming a resumption of the bear leg once again and maintaining the price sequence of lower lows and lower highs. This signals scope for weakness towards 4,194.75, the May 24 low. Pivot resistance is 4,447.76, the 50-day EMA. Ahead of the 50-day average is resistance at 4,391.25, the 20-day EMA.