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TECHS: Key Support Identified

EQUITIES

This week's price action in the S&P 500 FUT (Z0) has defined a key support at 3286.00, Wednesday's low. It is important because:

  • It lies just below an important area of support highlighted by the 50-day EMA. The last time the average was tested was on Jun 15 and 29. The subsequent recovery resulted in a resumption of the uptrend.
  • The average still suggests the bull trend remains intact.
  • A clear break of the support though would highlight an erosion of the average, confirm a resumption of recent selling pressure and reflect a rise in risk averse sentiment.
  • This would open 3209.00, the Jun 8 high.
  • 3286.00 is seen as the current key short-term risk parameter for bulls.

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