The reopening of China, which had benefited luxury stocks the day before, now raises fears of a new overheating of the economy and the return of inflation. In any case, this pretext is adopted by speculation, to form a new counterplay and confirm the scenario of a sideways trend on the major indices. Interest in the derivatives markets continues to dry up every day, regardless of direction, making the delays negligible. The weekly jobless claims published tomorrow Thursday in the US will, with oil stocks, be the only drivers to animate the session.
About January of the future
That resist is : 6512.5 then 6526 or even 6550 and 65781 then 6594 and 6608.5 equal zone 6636/6656 and 6686.5 then 6725 6762.5 then area 6797.5/6820, even 6870.
That fittings is : The area 6474/6482.5 and 6450.5, then 6407.5 and 6388 and 6368 then 6323.
Intraday the trend is neutral between 6474 and 6608.5.
Graphically, the future CAC40 (see attached graph in 14 hours), did not reach the upper part of the offshore trading area whose boundaries are 6474 and 6608. This failure highlights a short-term downtrend line, located at 6555 for the December 29 session. Its overflow, combined with the return beyond 6550, would reactivate the intraday bullish momentum. Then we would at least quickly target 6608.5.
For now, the return below the median of the range at 6550, gives a more negative bias to the intraday trend. Given the period, the sparse volumes and the overall lack of interest, the warning has little meaning at this stage. The legitimate target of the move should lead to the 6474/6482.5 area. We would tolerate an extension to major support at 6450.5 intraday.
Breaking the lower limit of the range at 6450.5 will allow targeting a move of similar magnitude to the consolidation zone ie. 134 points, slightly below the medium-term alert, located at 6323. This level can be tested, but will require a quick upward reaction.