E-Mini S&Ps Ease Off Recent Highs

The Eurostoxx 50 futures uptrend remains intact, however, this week’s corrective pullback remains in play and price has traded through the 20-day EMA. Attention turns to support at the 50-day EMA, which intersects at 4339.10. A break of the 50-day EMA would expose 4241.00, the May 31 low and bear trigger. Clearance of resistance at 4448.00, the Jan 2008 high (cont) would confirm a resumption of the uptrend. A bull theme in S&P E-minis remains intact and the latest pullback appears to be a correction. Last Friday’s gains reinforce a bullish condition. The contract has pierced key resistance and the bull trigger at 4493.75, the Jun 16 high. A clear break of this level would confirm a resumption of the uptrend and pave the way for a climb towards 4532.08, a Fibonacci projection. On the downside, initial support to watch is 4405.73, the 20-day EMA.

• Japan's NIKKEI closed lower by 565.68 pts or -1.7% at 32773.02 and the TOPIX ended 28.95 pts lower or -1.26% at 2277.08.
• Elsewhere, in China the SHANGHAI closed lower by 17.372 pts or -0.54% at 3205.575 and the HANG SENG ended 577.33 pts lower or -3.02% at 18533.05.
• Across Europe, Germany's DAX trades lower by 143.41 pts or -0.9% at 15794.33, FTSE 100 lower by 84.08 pts or -1.13% at 7358.84, CAC 40 down 114.36 pts or -1.56% at 7196.45 and Euro Stoxx 50 down 55.6 pts or -1.28% at 4295.11.
• Dow Jones mini down 148 pts or -0.43% at 34361, S&P 500 mini down 18.75 pts or -0.42% at 4465, NASDAQ mini down 63.25 pts or -0.41% at 15296.5.