Bullish Equity Theme Intact Through Consolidation Phase

A bullish theme in S&P e-minis remains intact and the contract is trading closer to its recent highs. So far, corrections have been shallow - a bullish signal. Note too that moving average studies are in a bull-mode position and this highlights positive market sentiment. A bullish theme in Eurostoxx 50 futures remains intact and the contract is trading higher this week. Last week, resistance at 4387.00, Nov 24 high, was breached. The break confirms a resumption of the uptrend and maintains the price sequence of higher highs and higher lows.

• Japan's NIKKEI closed lower by 587.59 pts or -1.76% at 32858.31 and the TOPIX ended 27.29 pts lower or -1.14% at 2359.91.
  
• Elsewhere, in China the SHANGHAI closed lower by 2.727 pts or -0.09% at 2966.206 and the HANG SENG ended 117.37 pts lower or -0.71% at 16345.89.
  
• Across Europe, Germany's DAX trades lower by 28.76 pts or -0.17% at 16626.87, FTSE 100 lower by 21.48 pts or -0.29% at 7494.06, CAC 40 down 10.78 pts or -0.15% at 7425.24 and Euro Stoxx 50 down 8.26 pts or -0.18% at 4475.07.
  
• Dow Jones mini down 77 pts or -0.21% at 36034, S&P 500 mini down 1.25 pts or -0.03% at 4552.75, NASDAQ mini up 27.25 pts or +0.17% at 15842.25.