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Price Signal Summary - EUROSTOXX Bounce Extends

OUTLOOK
  • A bear cycle in the E-mini S&P contract remains in play, however, the latest recovery undermines this bearish theme. A continuation higher would open 4597.50, the Sep 1 high, where a break would strengthen a bullish case. This would open 4617.40, 76.4% of the Jul 27 - Aug 18 sell-off. Key short-term support has been defined at 4483.25, the Sep 7 low. A break would be seen as a bearish development.
  • A bear cycle in EUROSTOXX 50 futures traded sharply higher yesterday and price is firmer today. These strong gains threaten the recent bearish theme and signal a possible short-term reversal with a key support defined at 4210.00, the Sep 8 low. A continuation higher would expose resistance at 4388.00, the Aug 30 high where a break would strengthen a bullish case. For bears, a break of 4210.00, would resume the recent downtrend.

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