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E-Minis Biased A Touch Lower Ahead Of NY Cash Open

EQUITIES

The continued presence of elevated geopolitical risk and cycle highs in longer dated U.S. Tsy yields have limited any upward impetus in e-minis.

  • A negative lead from Chinese & major European equity indices also provided some headwinds.
  • Earnings reports have quietened down ahead of the weekend.
  • That leaves the 3 major e-mini futures running 0.2-0.3% softer ahead of the NY cash open.
  • Technically, S&P 500 e-minis maintain a softer tone and the contract continues to trade below resistance at the 50-day EMA (4,482.75). A clear breach of this average is required to strengthen bullish conditions and this would open 4,486.12, trendline resistance drawn from the Jul 27 high. On the downside, a deeper pullback would open 4,235.50, the Oct 4 low and bear trigger. A break of this support would confirm a resumption of the downtrend.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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