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Price Signal Summary - S&P E-Minis Move Below The 50-Day EMA

MARKET INSIGHT
  • In the equity space, S&P E-minis resumed their downtrend yesterday, selling off sharply and have cleared the key 50-day EMA. An ability to remain below this average would strengthen bearish conditions and a resumption of weakness would open 4443.55 next, 61.8% retracement of the Oct 1 - Nov 22 rally. Initial firm resistance is at 46564.91, the 50-day EMA.EUROSTOXX 50 futures have traded in a choppy manner this week. The near-term outlook remains bearish and potential is seen for weakness towards 3949.50, the Oct 6 low. Initial resistance is at 4186.00, Dec 1 high.

  • In FX, EURUSD trend conditions remain bearish although for now, a bullish corrective cycle is still in play. Resistance points to watch are 1.1374, Nov 18 high and the 20-day EMA at 1.1366. This zone has been probed however a clear break is required to suggest scope for a stronger recovery. This would open 1.1514, the Nov 5 low. GBPUSD traded in a volatile manner Tuesday and defined that day’s low of 1.3195 as a key short-term support. Trend signals are bearish and a break of 1.3195 would confirm a resumption of the downtrend. Watch resistance at 1.3418, the 20-day EMA. USDJPY remains vulnerable following the Nov 26 sharp sell-off and has this week probed support at 112.73, Nov 9 low. A clear break would strengthen the bearish case and open 112.08, the Sep 30 high and a recent breakout level.
  • On the commodity front, Gold continues to trade lower. The short-term outlook is bearish with the focus on the base of the bull channel drawn from the Aug 9 low. The channel base intersects at $1760.4 today and is a key support. WTI futures remain in a downtrend with the focus on a move to $64.39 next, Aug 24 low.
  • In the FI space, Bund futures remain in an uptrend. Resistance at 172.57, Nov 22 high has been probed. A break would open 172.95, 76.4% of the Aug - Nov sell-off. Key support is unchanged at 170.31, Nov 24 low. Gilts maintain a bullish tone. Futures have recently cleared resistance at 126.23, high Nov 9 and attention is on the 127.00 handle. Key support is at 124.17, the Nov 24 low.

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