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Stocks Holding Late Tuesday Rally

EQUITIES
  • Equity futures are in a holding pattern ahead of the Wednesday open, with the e-mini S&P just below yesterday's late high of 4417.00. News and trade catalysts have been few and far between so far Wednesday, with focus turning to the upcoming ADP Employment Change data and the ISM Services Index.
  • Recent gains have confirmed a resumption of the uptrend and signal scope for a continuation near-term. The sell-off Jul 14 - 19 resulted in a break of 4279.25, Jul 8 low. However the contract found support at the 50-day EMA - this EMA represents an important support and the bounce from it is bullish. The focus is on 4481.75 next, a Fibonacci projection. Key support is 4224.00, Jul 19 low.
  • European cash trade is more positive, with Germany's DAX outperforming (up 0.8%) while UK's FTSE-100 lags slightly, albeit with gains of 0.4% or so. Europe's tech and industrials sectors are leading the way higher.

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