E-Mini S&P Pierces First Notable Support at 20-Day EMA

A bullish theme in Eurostoxx 50 futures remains intact and weakness into the Wednesday close appears to be a correction. Moving average studies are in a bull-mode position, signalling a rising trend cycle. Furthermore, recent gains confirmed a resumption of the uptrend and this has maintained the bullish price sequence of higher highs and higher lows. The focus is on 4636.70, a L/T Fibonacci retracement. Support at the 20-day EMA has been pierced, turning focus to the 50-day EMA of 4436.30. The pullback off last week’s highs in E-mini S&P has now cracked first material support at the 20-day EMA of 4744.58, with prices stabilising above the mark headed through the Thursday open. While the level has been pierced on an intraday basis, a close below will be needed to accelerate any reversal, keeping the medium-term view more positive. Last week’s fresh trend highs reinforce current conditions, with sights on 4854.75 next, a Fibonacci projection.

• Japan's NIKKEI closed higher by 89.13 pts or +0.27% at 33377.42 and the TOPIX ended 14.75 pts higher or +0.62% at 2393.54.
• Elsewhere, in China the SHANGHAI closed lower by 25.166 pts or -0.85% at 2929.183 and the HANG SENG ended 110.65 pts lower or -0.66% at 16535.33.
• Across Europe, Germany's DAX trades lower by 97.24 pts or -0.59% at 16519.74, FTSE 100 lower by 47.04 pts or -0.61% at 7675.58, CAC 40 down 63.77 pts or -0.86% at 7386.86 and Euro Stoxx 50 down 34 pts or -0.76% at 4440.01.
• Dow Jones mini down 52 pts or -0.14% at 37663, S&P 500 mini down 6.5 pts or -0.14% at 4723, NASDAQ mini down 30.5 pts or -0.19% at 16415.