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Price Signal Summary - Bear Leg Extends In EUROSTOXX 50 Futures

OUTLOOK
  • In the equity space, S&P E-Minis traded lower between Jul 16 - 25, resulting in a break of the 20- and 50-day EMAs. The breach does highlight a short-term bearish threat - a corrective cycle. Yesterday’s move lower and today’ extension reinforces the short-term bearish theme and this has opened 5370.62, 50.0% retracement of the Apr 19 - Jul 16 bull leg. Resistance to watch is 5600.75, the Aug 1 high. Clearance of this level would highlight a bullish break and signal the end of the correction.
  • A bear threat in EUROSTOXX 50 futures remains present and the contract traded lower Thursday and remains soft today. Price has recently breached 4846.00, the Apr 19 low. The clear break of this level paves the way for an extension towards 4679.00 next, 1.50 projection of the Jun 6 - 14 - Jul 12 price swing. Note that price has also traded through the 200-dma, reinforcing a bearish theme. Initial firm resistance to watch is 4951.89, the 50-day EMA. First resistance is 4793.00, the Jul 25 low.

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