E-Minis Lower To Start the Week

E-minis gapped lower at the re-open, taking out their respective Friday troughs, with little in the way of positive weekend news to counter Friday’s bearish momentum as Asia-Pac trade traders assessed matters at the start of a new trading week.

• The 3 major e-mini contracts now sit 0.5-0.6% lower vs. Friday’s settlement levels.
• Immediate technical support for the S&P 500 contract is located at the Aug 12 low (4,208.25), with any sustained break there set to expose key support in the form of the 20-day EMA (4,164.9). This comes after the contract failed to force a sustainable break above its 200-DMA last week, running out of steam ahead of downtrend resistance drawn off its all-time high.
• Still, our technical analysis notes that the technical outlook for the contract remains bullish. Recent gains confirmed an extension of the positive price sequence of higher highs and higher lows. Moving average conditions are in a bull mode set-up to and the focus is on 4,345.75 next, a Fibonacci projection and potentially 4,400.00 further out.