The main US contracts rallied post CPI to reach new all-time highs, while the move on the Estoxx was more contained as Euro strength weighed. We still see price action as constructive on both contracts and favor further advance.
ESTOXX M4 (ref. 5098): The contract pushed higher yesterday, but the move was not very impulsive. It is currently seesawing within a VST ascending channel in place since Tuesday's bottom and above 5080, we favor further advance with 5120 then 5150 as next resistances to look for.
Supports: 5080 - 5063 - 5047 - 5030
Resistances: 5120 - 5150 - 5200 - 5215
S&P M4 (ref. 5337.5): The contract rallied following CPI numbers and remains well oriented this morning. It stopped its advance @ 5343.25 overnight as the 60-min RSI is overbought, but we expect the current pause to be limited towards 5322 ahead of a break higher with 5375 as the next resistance to look for.
Supports: 5322 - 5303.5 - 5277 - 5266
Resistances: 5343 - 5375 - 5400 - 5415
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About the Author: Letheuil Fabien
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