Bearish Corrective Cycle in Eurostoxx 50 Futures Remains in Play

Eurostoxx 50 futures traded to a fresh cycle low Friday, before recovering. A bearish corrective cycle remains in play and the move down this month has allowed an overbought trend condition to unwind. The contract has traded through 4859.20, the 50-day EMA and a key pivot price point. A clear break of this average would signal scope for a deeper retracement and opens 4711.00, the Feb 19 low. Initial firm resistance is 4926.90, the 20-day EMA. The short-term trend condition in S&P E-Minis is unchanged and remains bearish. Friday’s extension reinforces current short-term conditions. The contract has cleared support at the 50-day EMA, signalling scope for a continuation lower near-term. Sights are on 4907.57 next, a Fibonacci retracement. Firm resistance is seen at 5164.38, the 20-day EMA. A clear break of the average would signal a possible reversal.

• Japan's NIKKEI closed higher by 370.26 pts or +1% at 37438.61 and the TOPIX ended 36.14 pts higher or +1.38% at 2662.46.
• Elsewhere, in China the SHANGHAI closed lower by 20.666 pts or -0.67% at 3044.595 and the HANG SENG ended 287.55 pts higher or +1.77% at 16511.69.
• Across Europe, Germany's DAX trades higher by 50.56 pts or +0.29% at 17786.38, FTSE 100 higher by 82.31 pts or +1.04% at 7977.68, CAC 40 down 7.85 pts or -0.1% at 8014.56 and Euro Stoxx 50 down 0.89 pts or -0.02% at 4917.2.
• Dow Jones mini up 127 pts or +0.33% at 38332, S&P 500 mini up 17.75 pts or +0.35% at 5020.75, NASDAQ mini up 78.25 pts or +0.46% at 17259.75.