Bear Cycle in E-Mini S&P Still in Play, Despite Recent Recovery

Eurostoxx 50 futures continue to push back against the recent bearish trend condition. Friday’s rally and the follow through early this week is, for now, deemed corrective in nature. Signs of further strength and a bottoming of prices would follow a break back above the 50-day EMA - a key level on Thursday at 4257.70. A break of this average would signal a possible short-term base, opening levels last seen in mid-September. The E-mini S&P trades higher for a fifth consecutive session, with the index holding just below the week’s highs ahead of the Wednesday cash open. Overall, a bear cycle remains in play, however downside momentum has paused in favour of a corrective rally. Pivot resistance remains above at the 50-day EMA at 4432.24, with the medium-term outlook remaining bearish the longer price holds below this level.

• Japan's NIKKEI closed higher by 558.15 pts or +1.75% at 32494.66 and the TOPIX ended 34.65 pts higher or +1.5% at 2342.49.
• Elsewhere, in China the SHANGHAI closed higher by 28.945 pts or +0.94% at 3107.901 and the HANG SENG ended 345.11 pts higher or +1.93% at 18238.21.
• Across Europe, Germany's DAX trades higher by 79.59 pts or +0.51% at 15541.52, FTSE 100 higher by 47.94 pts or +0.63% at 7669, CAC 40 up 28.79 pts or +0.4% at 7161.21 and Euro Stoxx 50 up 22.26 pts or +0.53% at 4224.35.
• Dow Jones mini up 61 pts or +0.18% at 34065, S&P 500 mini up 10.5 pts or +0.24% at 4421.5, NASDAQ mini up 40 pts or +0.26% at 15424.