Lower Start Eyed At NY Cash Open

Higher Tsy yields and a heavy session for Hong Kong’s Hang Seng (with Chinese property sector worry centred on disappointing sales numbers for September weighing) have applied pressure to e-minis.

• There was a brief recovery period as Tsy yields and the USD pulled back from early session highs during the London morning, but those moves were quickly reversed.
• That leaves the 3 major e-mini contracts running 0.5-0.8% lower ahead of NY cash trade.
• The NASDAQ 100 leads losses owing to comparative yield sensitivity, while the DJIA has been the most resilient.
• Technically, a bear cycle in S&P 500 e-minis remains in play and the contract is trading closer to its recent lows. The recent break of support at 4,397.75, the Aug 18 low, reinforced bearish conditions and signals scope for a continuation lower. A fresh extension lower would leave sights on 4,242.15, a Fibonacci retracement point. Initial firm resistance is 4,461.47, the 50-day EMA. Ahead of the 50-day average is resistance at 4,399.00, the Sep 22 high, and 4,415.45, the 20-day EMA.