Stephen pictured with his brother Jon
The 24-year-old man was detained on Monday. He has been bailed until early August.
Stephen, 30, from Plaistow, was stabbed to death in a car park off Epping New Road last month.
Investigators from the Essex Police Major Crime Team are appealing for those with information to come forward.
Witnesses can get in touch by calling 101, quoting crime reference 1191 of 23 June, or using the major incident public reporting site.
Alternatively they can call independent charity Crimestoppers completely anonymously on 0800 555 111.
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