FuturesTechs recommends selling December Euro STOXX futures , saying the contract is poised to extend its recent pullback and faces a further 4.4 percent downside from Monday's close.
The technical analysis firm flags a minor pullback in after-hours trading on Monday, when the future contract fell to 2,474 from 2,495, as showing that "bears still look to be in control".
It sees late-August-early September lows at 2396-2401 as the "obvious targets" of this technical pullback, along with 2,386, the 38.2 percent retracement of the rally started in June.
"While (a late September high of) 2,525 is above us we would still look for the pullback trade to unfold, so we'd be selling early on today," FuturesTechs says in a note.
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Keywords: MARKETS EUROPE STOCKSNEWS