Bullish Theme in E-Mini S&P Intact, Wednesday's Sell-Off Considered Corrective

A bullish theme in Eurostoxx 50 futures remains intact and the latest pullback appears to be a correction. Recent gains confirmed, once again, a resumption of the uptrend and this has maintained the bullish price sequence of higher highs and higher lows. Moving average studies are in a bull-mode position too, signalling a rising cycle. The focus is on 4636.70, a long-term Fibonacci retracement. Support to watch is at 4509.10, the 20-day EMA. A bullish theme in S&P e-minis remains intact and Wednesday’s abrupt sell-off appears to be a correction. This week’s fresh trend highs, confirm once again a resumption of the uptrend that started Oct 27. The contract has recently cleared resistance at 4738.50, the Jul 27 high, reinforcing current positive trend conditions. Sights are on 4854.75 next, a Fibonacci projection. On the downside, initial firm support lies at 4692.70, the 20-day EMA.

• Japan's NIKKEI closed higher by 28.58 pts or +0.09% at 33169.05 and the TOPIX ended 10.45 pts higher or +0.45% at 2336.43.
• Elsewhere, in China the SHANGHAI closed lower by 3.94 pts or -0.14% at 2914.775 and the HANG SENG ended 280.72 pts lower or -1.69% at 16340.41.
• Across Europe, Germany's DAX trades lower by 6.47 pts or -0.04% at 16680.75, FTSE 100 higher by 3.4 pts or +0.04% at 7698.18, CAC 40 up 3.7 pts or +0.05% at 7575.1 and Euro Stoxx 50 down 8.38 pts or -0.19% at 4516.48.
• Dow Jones mini down 107 pts or -0.28% at 37647, S&P 500 mini down 5.25 pts or -0.11% at 4791.5, NASDAQ mini down 42 pts or -0.25% at 16914.5.