E-minis break losing streak, but can bulls hold?

Good day! The market broke its 6-day losing streak on Thursday with a reaction off the daily support zone we've seen hit over the past several days. Nevertheless, trading was light as the indices crept higher in the afternoon, showing that the bulls are still on edge and not feeling particularly committed to this rebound.

The reaction to the early-morning economic data was mixed. Overseas, the European Central bank kept its key interest rate unchanged at 1.25%, but did not rule out an increase in July. Back in the States, the number of first-time filings for unemployment benefits rose 1,000 last week to 427,000. This was higher than anticipated. Meanwhile, the U.S. trade deficit narrowed unexpectedly to $43.7 billion in April.

Dow Jones Industrial Average (Figure 1)

These premarket releases lead to a bit of whip-lash ahead of the open, but had no lasting impact. The Nasdaq-100 futures had been forming a 2-wave continuation pattern on the short side prior to the data and this technical move continued once the news was absorbed. The continuation lasted for the first 15 minutes of the regular trading session. Both the S&P 500 and Dow Jones Ind. Average futures, on the other hand, continued to trade within premarket congestion while the Nasdaq sold off.

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