Bearish Corrective Cycle in Eurostoxx 50 Futures Still in Play

Eurostoxx 50 futures are trading lower today. A bearish corrective cycle remains in play and the move down this month is allowing an overbought trend condition to unwind. The contract is approaching support at 4856.40, the 50-day EMA and this level marks the next key pivot price point. A clear break of the EMA would signal scope for a deeper retracement. Initial resistance to watch is 4990.00, the Apr 15 high. The short-term trend condition in S&P E-Minis is unchanged and remains bearish. Yesterday’s move lower reinforces the current condition - the contract has traded through support at the 50-day EMA and this signals scope for a continuation lower near-term. Sights are on 5070.36 next, a Fibonacci retracement. Clearance of this level would open 5018.00, the Feb 21 low. Firm resistance is seen at 5221.49, the 20-day EMA.

• Japan's NIKKEI closed lower by 761.6 pts or -1.94% at 38471.2 and the TOPIX ended 56.09 pts lower or -2.04% at 2697.11.
• Elsewhere, in China the SHANGHAI closed lower by 50.31 pts or -1.65% at 3007.068 and the HANG SENG ended 351.49 pts lower or -2.12% at 16248.97.
• Across Europe, Germany's DAX trades lower by 257.67 pts or -1.43% at 17763.58, FTSE 100 lower by 119.47 pts or -1.5% at 7845.71, CAC 40 down 102.87 pts or -1.28% at 7937.06 and Euro Stoxx 50 down 66.4 pts or -1.33% at 4914.69.
• Dow Jones mini down 47 pts or -0.12% at 37952, S&P 500 mini down 4.25 pts or -0.08% at 5100.5, NASDAQ mini down 9.25 pts or -0.05% at 17871.75.