E-Mini S&P Pullback Highlights Vulnerability

EUROSTOXX 50 futures traded sharply lower late last week to extend the pullback from 4043.00, the Dec 13 high. The move down suggests potential for a deeper retracement with sights on the 50-day EMA, at 3798.90. On the upside, key resistance has been defined at 4043.00 where a break is required to resume the recent uptrend. The S&P E-Minis appears vulnerable following last week’s sharp move lower. Thursday’s sell-off reinforced a bearish threat and note that this also highlights the importance of a shooting star candle formation on Dec 13 - a reversal signal. A continuation lower would open 3855.13, a Fibonacci retracement. Key resistance is unchanged at 4180.00, the Dec 13 high, where a break is required to resume the recent uptrend.

• Japan's NIKKEI closed lower by 289.48 pts or -1.05% at 27237.64 and the TOPIX ended 14.8 pts lower or -0.76% at 1935.41.
• Elsewhere, in China the SHANGHAI closed lower by 60.743 pts or -1.92% at 3107.115 and the HANG SENG ended 97.86 pts lower or -0.5% at 19352.81.
• Across Europe, Germany's DAX trades higher by 69.32 pts or +0.5% at 13969.75, FTSE 100 higher by 32.45 pts or +0.44% at 7364.65, CAC 40 up 42.29 pts or +0.66% at 6497.74 and Euro Stoxx 50 up 20.59 pts or +0.54% at 3826.99.
• Dow Jones mini up 109 pts or +0.33% at 33226, S&P 500 mini up 14.75 pts or +0.38% at 3892.75, NASDAQ mini up 47.25 pts or +0.42% at 11390.75.