E-Mini S&P Trades Close to Resistance at 20-Day EMA

Eurostoxx 50 futures are trading higher as the correction from recent lows extends. Price is through resistance at the 20-day EMA and this signals scope for a test of the 50-day EMA, at 4184.40. The broader trend condition is bearish, however, a break of the 50-day average would signal scope for a stronger bull cycle. This would open 4256.00, the Oct 12 high. On the downside, key support and the bear trigger lies at 4001.0, the Oct 27 low. The trend condition in S&P e-minis is bearish and this week’s move higher is considered corrective. The contract traded to a fresh cycle low last week. The recent breach of support at 4235.50, Oct 4 low and bear trigger, confirmed a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. MA studies are in a bear-mode position too. The focus is on 4100.00. Initial firm resistance is at 4276.29, the 20-day EMA.

• Japan's NIKKEI closed higher by 348.24 pts or +1.1% at 31949.89 and the TOPIX ended 11.71 pts higher or +0.51% at 2322.39.
• Elsewhere, in China the SHANGHAI closed lower by 13.67 pts or -0.45% at 3009.406 and the HANG SENG ended 128.81 pts higher or +0.75% at 17230.59.
• Across Europe, Germany's DAX trades higher by 170.09 pts or +1.14% at 15091.05, FTSE 100 higher by 77.18 pts or +1.05% at 7419.13, CAC 40 up 89.44 pts or +1.29% at 7018.9 and Euro Stoxx 50 up 51.58 pts or +1.26% at 4141.47.
• Dow Jones mini up 91 pts or +0.27% at 33443, S&P 500 mini up 19 pts or +0.45% at 4275, NASDAQ mini up 88.5 pts or +0.6% at 14833.