E-Minis Stabilise

The 3 major e-mini futures are 0.4% firmer on the day ahead of NY cash trade, stabilising a little above yesterday’s low.

• A light uptick in Chinese/HK equities and Tsys stabilising off cycle highs in yield terms aided e-minis, along with a lack of meaningful negatives to promote a deeper sell off.
• Elsewhere, crude oil futures firmed.
• In stock specifics, Costco is biased lower pre-market, with a lack of colour re: an increase in membership fees flagged as a disappointment by some (-1.7% pre-market).
• Technically, a bear cycle in S&P 500 e-minis remains in play and the contract traded lower Tuesday, extending the current downleg. Last Thursday’s sell-off resulted in a break of support at 4,397.75, the Aug 18 low. This breach reinforced bearish conditions and signals scope for a continuation lower. Sights are on 4,300.62, a Fibonacci retracement point. Initial firm resistance is 4,485.10, the 50-day EMA. Short-term gains would be considered corrective.