E-Mini S&P Breaches 50-Day EMA, Signaling Scope for Extension Lower

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The Eurostoxx 50 futures contract has pulled back from recent highs. A key short-term support at 4282.10 remains intact - for now. This is the 20-day EMA where a break is required to signal a short-term top and highlight potential for a deeper pullback - towards 4206.30, the 50-day EMA. Trend conditions remain bullish and attention is on the bull trigger at 4363.00, Apr 21 high. A break would open 4381.50, Jan 5 2022 high (cont). A strong sell-off in S&P E-minis this week has resulted in a break below both the 20- and 50-day EMAs. The break of the 50-day EMA strengthens short-term bearish conditions and signals scope for an extension lower, towards 4061.11 next and 4018.75, Fibonacci retracement points. On the upside, the 20-day EMA at 4120.83 marks initial resistance, a clear break above this EMA would ease bearish pressure.

• Japan's NIKKEI closed higher by 41.21 pts or +0.15% at 28457.68 and the TOPIX ended 8.61 pts higher or +0.43% at 2032.51.
• Elsewhere, in China the SHANGHAI closed higher by 21.784 pts or +0.67% at 3285.885 and the HANG SENG ended 83.01 pts higher or +0.42% at 19840.28.
• Across Europe, Germany's DAX trades higher by 18.49 pts or +0.12% at 15810.48, FTSE 100 higher by 2.88 pts or +0.04% at 7852.96, CAC 40 up 29.84 pts or +0.4% at 7494.06 and Euro Stoxx 50 up 8.38 pts or +0.19% at 4354.41.
• Dow Jones mini up 83 pts or +0.25% at 33509, S&P 500 mini up 19.5 pts or +0.48% at 4096.25, NASDAQ mini up 99.5 pts or +0.77% at 12992.5.