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Early Outperformance of US GSIBs Hits Reverse, Indicated Lower Into Open

EQUITIES
  • Best volumes of the session so far going through in e-mini S&P futures - coincides with a fresh daily low and a show below Friday's 3881.00.
  • More solid trade among US GSIBs this morning had been seen propping up the headline index. This has since reversed, with JPM, BofA, Citi, Wells Fargo and others now pointing to a lower open - thereby reversing the rally seen on the back of Fed actions late Sunday night.
  • Volumes for this time of day are ahead of that seen on Friday (however it may have been the case of markets sitting on the sidelines ahead of the NFP release) and the more muted data and speaker schedule today could see activity wane through the London close.
  • Nonetheless, this morning's bearish moves open next support at 3853.00 (Jan 6 low) and the Dec 22 key support of 3822.00.

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