Bear Threat Still Present in Eurostoxx Futures Despite Latest Move Higher

The latest move higher in Eurostoxx 50 futures appears to be a correction and a bear threat remains present. The contract traded sharply lower last week, clearing a number of key support levels. 4241.00, the May 31 low, has been breached highlighting a potential reversal, opening 4208.50, a Fibonacci retracement. Key short-term resistance is seen at 4329.40, the 50-day EMA. A clear break of this average would ease bearish pressure. A bull theme in S&P E-minis remains intact and the pullback last week appears to be a correction. First support at 4420.62, the 20-day EMA, remains intact. Clearance of this level would strengthen a bearish threat and expose 4368.50, Jun 26 low and a key support. On the upside, the bull trigger is at 4498.00, the Jun 16 high. A clear breach of this level would confirm a resumption of the uptrend and open 4532.08, a Fibonacci projection.

• Japan's NIKKEI closed lower by 259.64 pts or -0.81% at 31943.93 and the TOPIX ended 14.92 pts lower or -0.67% at 2221.48.
• Elsewhere, in China the SHANGHAI closed lower by 25.233 pts or -0.78% at 3196.134 and the HANG SENG ended 201.12 pts higher or +1.08% at 18860.95.
• Across Europe, Germany's DAX trades higher by 111.76 pts or +0.71% at 15902.05, FTSE 100 higher by 58.3 pts or +0.8% at 7340.86, CAC 40 up 58.71 pts or +0.81% at 7279.29 and Euro Stoxx 50 up 38.71 pts or +0.9% at 4325.48.
• Dow Jones mini up 34 pts or +0.1% at 34498, S&P 500 mini up 6 pts or +0.13% at 4479.75, NASDAQ mini up 27.25 pts or +0.18% at 15288.25.