E-Mini S&P Trend Conditions Bullish With Corrections Lower Shallow

The trend condition in S&P E-Minis remains bullish and the latest move lower appears to be a correction. Price action continues to highlight the fact that corrections are shallow - this is a bullish signal that highlights positive market sentiment. Support to watch is 5049.64, the 20-day EMA. A clear break of this average would signal potential for a deeper retracement towards 4935.76, the 50-day EMA. Sights are on 5170.86, a Fibonacci projection. A bullish theme in Eurostoxx 50 futures remains intact and Monday’s fresh cycle high reinforces this theme. Moving average studies remain in a bull-mode position and this set-up highlights positive market sentiment. Sights are on 4939.30 next, a Fibonacci projection. Further out, scope is seen for a climb towards a bull channel top at 5008.70. The channel is drawn from the Oct 27 low. Initial firm support lies at 4816.80, the 20-day EMA.

• Japan's NIKKEI closed lower by 6.85 pts or -0.02% at 40090.78 and the TOPIX ended 10.74 pts higher or +0.39% at 2730.67.
• Elsewhere, in China the SHANGHAI closed lower by 7.862 pts or -0.26% at 3039.931 and the HANG SENG ended 275.45 pts higher or +1.7% at 16438.09.
• Across Europe, Germany's DAX trades higher by 38.54 pts or +0.22% at 17736.77, FTSE 100 higher by 27.22 pts or +0.36% at 7673.42, CAC 40 up 20.12 pts or +0.25% at 7952.94 and Euro Stoxx 50 up 22 pts or +0.45% at 4915.07.
• Dow Jones mini up 94 pts or +0.24% at 38700, S&P 500 mini up 19.25 pts or +0.38% at 5105, NASDAQ mini up 126.75 pts or +0.71% at 18056.5.