EM LATAM CREDIT: "ARGENTINA CENTRAL BANK PURCHASED $86.5M IN FX MARKET" - BBG

• Stocks are mixed in late trade, scaling back first half gains with S&P Eminis and Nasdaq indexes outperforming DJIA by the bell. Well off this morning's high of 43115.31 the DJIA trades down 51.3 points (-0.12%) at 42680.66, S&P E-Minis up 24.25 points (0.4%) at 6013.75, Nasdaq up 192.4 points (1%) at 19812.54.
• Semiconductor makers continued to benefit from news announced late Friday that Microsoft plans to invest $80B in AI-enabled data centers - at least half of that expected to be in the US. Leading gainers included Micron Technology +10.99%, Teradyne +6.98% while First Solar, Nvidia, KLA Corp, Applied Materials ad Lam Research all gained 3-5% in the second half.
• Interactive media and entertainment shares buoyed the Communication Services sector with Meta +2.79%, Paramount +2.67% and Alphabet +2.26%.
• On the flipside, Utility and Real Estate sectors continued to underperform in late trade, multi-energy providers weighing on the former: Sempra -3.18%, PG&E -2.84%, Xcel Energy -2.19%. Office and Residential investment trusts weighed on the Real Estate sector with UDR -3.48%, Essex Property Trust -3.35% and Kimco -3.24%.
• Reminder, the next round of quarterly earnings kicks off mid-January with Blackrock, Bank of NY Melon, Wells Fargo, JP Morgan, Goldman Sachs, Citigroup, US Bancorp, M&T Bank and PNC all reporting between January 13-16.

• RES 3: 96.975 - High Mar 14 
• RES 2: 96.501 - 76.4% of the Mar 14 - Nov 1 ‘23 bear leg
• RES 1: 96.207 - 61.8% of the Mar 14 - Nov 1 ‘23 bear leg
• PRICE: 95.485 @ 19:58 GMT Jan 6
• SUP 1: 95.460 - Low Dec 20
• SUP 2: 95.275 - Low Nov 14
• SUP 3: 94.590 - 1.0% 10-dma envelope

The Aussie 10-yr futures contract continues to trade below the Dec 11 high of 95.851. A resumption of gains and a break of 95.851 would reinstate a bull cycle and refocus attention on resistance at the 96.207 level, a Fibonacci retracement point. On the downside, a stronger bearish reversal would instead expose 95.275, the Nov 14 low and a key support. A break of this level would strengthen a bearish theme.

• RES 4: 166.51 2.0% 10-dma envelope
• RES 3: 166.10 High Nov 6  
• RES 2: 165.04 High Nov 15 and a key short-term resistance
• RES 1: 164.02 High Jan 6
• PRICE: 162.54 @ 07:05 GMT Jan 6 
• SUP 1: 160.91 Low Jan 2    
• SUP 2: 160.54 50.0% retracement of the Dec 3 - 30 bull cycle   
• SUP 3: 159.51 61.8% retracement of the Dec 3 - 30 bull cycle
• SUP 4: 158.67 Low Dec 11

EURJPY traded higher Monday but remains below the Dec 30 high. The recent move down appears corrective and a bullish S/T condition is intact. The next support to watch lies at 160.54, 50.0% of the Dec 3 - 30 bull cycle. The 61.8% level is at 159.51. Monday’s gains are a positive development, a resumption of the uptrend would open 165.04, the Nov 15 high. Clearance of this hurdle would expose 166.69, the Oct 31 high and a major resistance.