E-Mini S&P Gains Considered Technically Corrective, Trend Remains Bearish

Eurostoxx 50 futures traded lower Friday. Price has moved below a key support at 4258.60 - the base of a bull channel drawn from the Oct 13 low. A continuation lower would threaten the uptrend that has been in place since late September last year. An initial downside objective would be 4169.30, the 50-day EMA. Key resistance has been defined at the 4328.00, the Mar 6 high and is the bull trigger. The short-term condition in S&P E-Minis remains bearish following last week’s sell-off. Today’s gains are considered corrective. Price last week cleared key short-term support at 3960.75, the Mar 2 low and this confirmed a resumption of the bear cycle that has been in place since the Feb 2 reversal. The move lower signals potential for an extension towards 3822.00, the Dec 22 low. Initial firm resistance is seen at 4045.27, the 50-day EMA.

• Japan's NIKKEI closed lower by 311.01 pts or -1.11% at 27832.96 and the TOPIX ended 30.59 pts lower or -1.51% at 2000.99.
• Elsewhere, in China the SHANGHAI closed higher by 38.619 pts or +1.2% at 3268.696 and the HANG SENG ended 376.05 pts higher or +1.95% at 19695.97.
• Across Europe, Germany's DAX trades lower by 144.16 pts or -0.93% at 15302.81, FTSE 100 lower by 66.22 pts or -0.85% at 7685.72, CAC 40 down 75.22 pts or -1.04% at 7152.94 and Euro Stoxx 50 down 45.83 pts or -1.08% at 4188.78.
• Dow Jones mini up 201 pts or +0.63% at 32115, S&P 500 mini up 41 pts or +1.06% at 3904, NASDAQ mini up 148.75 pts or +1.26% at 11991.75.