Contracts have been stabilizing since the beginning of the EU session, but the overall pattern still looks toppish to us following the recent rally and yday's price action. We therefore still favour further pause.
ESTOXX M4 (ref. 5057): The contract dipped briefly below 5047 then bounced back and remains above the support. A limited bounce towards 5070, possibly a touch higher, appears therefore still possible ahead of a setback.
Supports: 5047 - 5030 - 5003 - 4988
Resistances: 5070 - 5092 - 5110 - 5120
S&P M4 (ref. 5323.25): The contract has been drifting higher since the beginning of the EU session but remains below the 5330 resistance we highlighted this morning. We still favour a setback from this level with 5303.5 in sight.
Supports: 5303.50 - 5286 - 5277 - 5266
Resistances: 5330 - 5350 - 5375 - 5400
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About the Author: Letheuil Fabien
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