Bearish Eurostoxx Futures Breach 50-Day EMA

EUROSTOXX 50 futures are in a clear bear mode position and today’s move lower has reinforced this theme. The break lower has confirmed a breach of the 50-day EMA - at 3799.60. The break of this average signals scope for an extension lower near-term and this has opened 3720.00 next, the Nov 10 low. On the upside, initial firm resistance is seen at the 20-day EMA - it intersects at 3896.10. S&P E-Minis continue to trade lower and a clear risk-off mood is driving prices lower. The bearish activity has reinforced recent reversal signals - a shooting star candle on Dec 13 followed by a break on Dec 15, of support at 3945.75, the Dec 7 low. The focus is on 3778.45, a Fibonacci projection. On the upside, initial firm resistance is seen at 3952.05, the 50-day EMA. A break of this EMA is required to ease bearish pressure.

• Japan's NIKKEI closed lower by 669.61 pts or -2.46% at 26568.03 and the TOPIX ended 29.82 pts lower or -1.54% at 1905.59.
• Elsewhere, in China the SHANGHAI closed lower by 33.349 pts or -1.07% at 3073.766 and the HANG SENG ended 258.01 pts lower or -1.33% at 19094.8.
• Across Europe, Germany's DAX trades lower by 50.64 pts or -0.36% at 13895.52, FTSE 100 lower by 13.19 pts or -0.18% at 7348.26, CAC 40 down 38.82 pts or -0.6% at 6436.06 and Euro Stoxx 50 down 13.29 pts or -0.35% at 3798.83.
• Dow Jones mini down 32 pts or -0.1% at 32941, S&P 500 mini down 8.5 pts or -0.22% at 3837.25, NASDAQ mini down 42.5 pts or -0.38% at 11152.75.