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Late Equity Roundup: Off Lows, Banks Paring Losses Ahead Weekend

US STOCKS
  • US Stocks continue to drift off first half lows, SPX Eminis at 3990.0 and the Dow at 32,175 are making modest gains, while Nasdaq shares remain mildly weaker at 11,775 in late trade.
  • Utilities (+2.34%), Real Estate (+1.51%) and Consumer Staples (+1.44%) sectors continue to underpin Eminis while bank shares are gradually shrugging off early carry-over weakness following a sell-off in European banks overnight (Deutsche Bank -12%, Commerzbank -9%).
  • From a technical perspective, focus remains on the 50-day EMA as Eminis failed to hold above the support level after Wednesday's sell-off. The move down means that price has - so far - failed to hold above pivot resistance around the 50-day EMA - a bearish development.
  • The EMA intersects at 4021.50 and a clear break is required to strengthen bullish conditions. Support at 3966.25, Wednesday’s low, has been breached. This signals scope for 3897.25 next, the Mar 20 low. Key short-term resistance is at 4073.75, the Mar 22 high.

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