The S&P approached last week's high yday, but the overall pattern still appears constructive to us. Meanwhile, the Stoxx Europe 600 consolidated a bit yday, but downward potential should be very limited ahead of a rebound.
ESTOXX M4 (ref. 5067): The contract dipped lower in overnight trading but bounced at 5057. Looking at the broader picture, there is no immediate clear trend as the contract has been trading more or less sideways since the 10th of May. On an intra-day basis, we favour a rebound with 5084 then 5092 in sight.
Supports: 5057 - 5045 - 5030 - 5003
Resistances: 5084 - 5092 - 5110 - 5120
S&P M4 (ref. 5333.25): The contract approached yday's 5350 target we highlighted then came back off a bit. Nevertheless, it remains above the 5323 intermediate support and we therefore favour another test of 5350 and potentially a break higher with 5375 in sight.
Supports: 5323 - 5303.5 - 5286 - 5277
Resistances: 5350 - 5375 - 5400 - 5415
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About the Author: Letheuil Fabien
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