E-Minis Little Changed Into Cash Open

Any meaningful tailwinds surrounding the previously covered HK tech outperformance (after a heavy end to last week) and lower bond yields have been nullified ahead of the cash equity open, with the 3 major e-mini futures trading within -/+0.1% of yesterday’s settlement levels. The NASDAQ 100 is the only contract to sit a touch higher on the day.

• There hasn’t been much in the way of meaningful macro headline flow to note since the London open, with the major European and UK equity indices sitting a little shy of best levels, registering modest gains on the day as of typing.
• China-linked tech names are worth watching after today’s partial rebound in HK (which failed to fully reverse Friday’s pressure for the HS Tech index).
• A quick reminder that online gaming curbs issued by Chinese regulators caught market participants off guard ahead of the weekend.
• A subsequent round of approvals for various games and policymaker communique re: an apparent willingness to alter the draft regulation facilitated the bounce from Friday’s lows for the likes of NetEase & Tencent during HK trade on Wednesday.
• Tesla shares are indicated 0.6% higher pre-market, after Wedbush pointed to a strong Q4 delivery trajectory.
• Technically, a bullish theme in S&P 500 e-minis remains intact and yesterday’s fresh trend high (4,834.50) reinforces those conditions. The move higher confirms a resumption of the uptrend that started Oct 27. The contract has also recently cleared resistance at 4,738.50, the Jul 27 high, reinforcing current positive trend conditions. Sights are on 4,854.75 next, a Fibonacci projection. On the downside, initial firm support lies at 4,715.00, the 20-day EMA.