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Price Signal Summary - Risk-Off Driving Markets As Equities and Bonds Sell-Off

MARKET INSIGHT
  • In the equity space, S&P E-Minis remain vulnerable and have once again resumed the current bear leg. Price has traded below Tuesday’s 3708.500 low. This confirms a resumption of the primary downtrend and has resulted in a test of 3697.99, the 0.618 projection of the Mar 29 - May 20 - 31 price swing. A clear break would open 3600.00. EUROSTOXX 50 futures remain vulnerable and the contract is again facing selling pressure. The focus is on weakness towards 3400.00 and more importantly towards 3309.00, the Mar 7 low and a key bear trigger.
  • In FX, the short-term EURUSD is largely unchanged but the outlook remains bearish. This follows the reversal lower from the top of its bear channel, drawn from the Feb 10 high. The focus is on 1.0350, the May 13 low and bear trigger. Initial firm resistance is at 1.0596, the 20-day EMA. Recent weakness in GBPUSD remains in a downtrend, despite yesterday’s bounce. A resumption of weakness would refocus attention on Tuesday’s 1.1934 low. A break would confirm a resumption of the downtrend. USDJPY has pulled away from its high yesterday of 135.59. The move lower is considered corrective and firm short-term support is seen at 131.63, the 20-day EMA.
  • On the commodity front, Gold remains vulnerable following Monday’s sharp sell-off. This follows a failure to hold on to levels above the 50-day EMA and resulted in a sharp sell-off. The focus is on a move lower towards $1787.0, May 16 low. A break would resume the downtrend. In the Oil space, WTI futures remain in an uptrend however the contract has entered a corrective cycle. This has resulted in a move below the 20-day EMA, at 155.66. An extension lower would suggest scope for a deeper pullback and open the 50-day EMA at $108.91.
  • In the FI space, Bund futures continue to weaken. The focus is on 142.00. Gilts remain in a downtrend. The focus is on 111.00 next.
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Fixed Income Technical AnalysisForeign Exchange Technical AnalysisMetals bulletMetals Technical AnalysisHomepagemarkets-real-timeCommoditiesEquitiesEnergy BulletsBulletMarketsFixed Income BulletsForeign Exchange BulletsEnergy Technical Analysis

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