E-Mini S&P Move Lower Considered Technically Corrective

EUROSTOXX 50 futures are consolidating above support at 4097.00, Jan 19 low. The contract is also trading just ahead of key short-term resistance at 4206.00, Jan 18 high. A break of this level would resume the uptrend and pave the way for a climb towards 4215.00, a Fibonacci projection. Note that the trend remains overbought. A pullback, if seen, would represent a healthy correction. Support to watch is 4101.40, the 20-day EMA. S&P E-Minis traded higher last week to confirm a resumption of the current uptrend. The move lower Monday is likely a correction. The recent breach of resistance has resulted in a print above the 4100.00 handle and an extension higher would open 4180.00, the Dec 13 high and a bull trigger. Initial firm support has been defined at 3957.89, the 50-day EMA. A move below the average would be seen as a bearish development and signal a reversal.

• Japan's NIKKEI closed lower by 106.29 pts or -0.39% at 27327.11 and the TOPIX ended 7.13 pts lower or -0.36% at 1975.27.
• Elsewhere, in China the SHANGHAI closed lower by 13.649 pts or -0.42% at 3255.669 and the HANG SENG ended 227.4 pts lower or -1.03% at 21842.33.
• Across Europe, Germany's DAX trades lower by 86.44 pts or -0.57% at 15039.8, FTSE 100 lower by 47.62 pts or -0.61% at 7737.43, CAC 40 down 36.89 pts or -0.52% at 7045.12 and Euro Stoxx 50 down 21.28 pts or -0.51% at 4137.35.
• Dow Jones mini down 100 pts or -0.3% at 33685, S&P 500 mini down 12.25 pts or -0.3% at 4020.25, NASDAQ mini down 51 pts or -0.43% at 11917.5.