E-Minis Point To Higher Cash Open, Tech Outperforms In Pre-Cash Trade

E-minis have generally looked to a softer USD and a (modest) positive lead from both China and mainland Europe in pre-NY dealing, as well as Chinese credit data, leaving the 3 major contracts 0.3-0.9% higher.

• The NASDAQ 100 contract leads the rally, while the DJIA lags.
• The S&P 500 & NASDAQ 100 contracts have hit fresh session highs ahead of NY trade.
• A price target upgrade for Tesla at Morgan Stanley, an Apple/Qualcomm pact extension and Meta AI development have been the major headlines surrounding the tech sphere, with the Tesla news generating a meaningful positive reaction pre-market (the name is indicated over 6% higher).
• Technically, the e-mini S&P 500 contract traded lower last week and a bear cycle remains in play. Key resistance has been defined at 4,597.50, Sep 1 high. A break is required to reinstate the recent bullish theme. A resumption of weakness would signal scope for a move towards the key support and bear trigger at 4,397.75, the Aug 18 low. A break of this support would highlight a short-term reversal. For bulls, clearance of 4,597.50 would open 4,685.25, Jul 27 high.