E-Mini S&P Tests 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 in E-mini S&P off last week’s highs has now tested the first material support at the 20-day EMA of 4748.77, 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 lower by 175.88 pts or -0.53% at 33288.29 and the TOPIX ended 12.4 pts higher or +0.52% at 2378.79.
• Elsewhere, in China the SHANGHAI closed lower by 12.898 pts or -0.43% at 2954.349 and the HANG SENG ended 0.43 pts lower or 0% at 16645.98.
• Across Europe, Germany's DAX trades higher by 49.85 pts or +0.3% at 16587.65, FTSE 100 higher by 16.76 pts or +0.22% at 7698.9, CAC 40 up 14.91 pts or +0.2% at 7426.01 and Euro Stoxx 50 up 13.79 pts or +0.31% at 4461.92.
• Dow Jones mini up 47 pts or +0.12% at 37742, S&P 500 mini up 6.75 pts or +0.14% at 4753.5, NASDAQ mini up 38.5 pts or +0.23% at 16576.