E-Mini S&P Trades Lower Again, But Above Jan 05 Lows

Eurostoxx 50 futures have traded lower this week and in the process breached support at the Jan 5 low of 4444.0. The primary trend direction is up and the recent move lower is considered corrective. However, the break below 4444.00 and 4450.70, the 50-day EMA, suggests scope for an extension of the bear cycle. This has opened 4370.00, the Nov 28 low. Initial resistance is 4536.00, the Jan 11 high. S&P E-Minis are trading lower today but - for now - continue to trade above the Jan 5 low. Key resistance and the bull trigger is unchanged at 4841.50, the Dec 28 high. A break of this level would resume the uptrend and open 4854.75, a Fibonacci projection. Support at the 20-day EMA of 4773.54 has recently been pierced. A clear break of this average would strengthen a short-term bearish threat and open the 50-day EMA, at 4684.17.

• Japan's NIKKEI closed lower by 141.43 pts or -0.4% at 35477.75 and the TOPIX ended 7.6 pts lower or -0.3% at 2496.38.
• Elsewhere, in China the SHANGHAI closed lower by 60.374 pts or -2.09% at 2833.615 and the HANG SENG ended 589.02 pts lower or -3.71% at 15276.9.
• Across Europe, Germany's DAX trades lower by 180.94 pts or -1.09% at 16389.89, FTSE 100 lower by 126.15 pts or -1.67% at 7431.8, CAC 40 down 88.19 pts or -1.19% at 7307.62 and Euro Stoxx 50 down 46.86 pts or -1.05% at 4398.17.
• Dow Jones mini down 146 pts or -0.39% at 37409, S&P 500 mini down 23.25 pts or -0.48% at 4775.5, NASDAQ mini down 107.5 pts or -0.63% at 16858.75.