US futures trim gains in European morning trade

It was up around 0.4% in early morning trade in Europe, before the gradual retreat in the last few hours. Tech shares are still the main anchor though, with Nasdaq futures up 0.4%. But Dow futures have even turned flat on the session now. European stocks are not too much affected, with major indices still holding slight gains. The DAX and CAC 40 are both up 0.3% while the UK FTSE is up 0.5%.

After six days of losses, Wall Street followed that up with back-to-back gains this week. It’s a modest bounce for the S&P 500, coming right before a test of its 100-day moving average (red line):

The question now though, is the selling over already? Or is this just a mild bounce before sellers continue with the recent retracement?

The latest bounce, while encouraging, still sees near-term price action keep below both its key hourly moving averages:

And that means the near-term bias is still keeping more bearish. At least until buyers make a play to break above either the 100 (red line) or 200-hour (blue line) moving averages as seen above.

This article was written by Justin Low at www.forexlive.com.