Contracts have been consolidating a bit following yesterday's break higher in the US. Nevertheless, the overall pattern remains bullish, and we therefore still favor buying into weakness.
ESTOXX M4 (ref. 5079): The contract has been consolidating a touch more than we thought this morning as it escaped on the downside from its VST ascending channel in place since Tuesday's bottom. Nevertheless, this down move is not impulsive, and we therefore expect it to be limited towards 5070/63 ahead of a rebound with 5110/20 in sight.
Supports: 5070/63 - 5047 - 5030 - 5003
Resistances: 5110 - 5120 - 5150 - 5200
S&P M4 (ref. 5332.25): The contract has been trading sideways since the beginning of the EU session, but the overall pattern still appears constructive. We still favor a rebound at 5322 ahead of a push higher with 5375 in sight.
Supports: 5322 - 5303.5 - 5277 - 5266/60
Resistances: 5343.25 - 5375 - 5400 - 5415
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About the Author: Letheuil Fabien
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