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E-Minis Back On The Defensive Into NY Cash Open

EQUITIES

Some China-centric worry in Asia-Pac hours helped bias e-minis lower in pre-NY cash trade, although a move off fresh cycle highs for long end Tsy yields did help stabilise the contracts. That was before fresh weakness came in during recent dealing, with firmer than expected hosuing market data eyed.

  • The 3 major contracts run 0.6-0.7% lower, sitting a little above worst levels of the day.
  • Technically, a bear cycle in S&P 500 e-minis remains in play and the price traded lower Monday. Last Thursday’s sell-off resulted in a break of support at 4,397.75, the Aug 18 low. This breach reinforces bearish conditions and signals scope for a continuation lower. Sights are on 4,318.00 next, the Jun 2 low. Initial firm resistance is 4,492.05, the 50-day EMA. Short-term gains would be considered corrective.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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