E-Mini S&Ps Narrow Gap to Key Support at 20-Day EMA

The Eurostoxx 50 futures uptrend remains intact, however, a bearish corrective cycle last week resulted in a correction. The contract has breached support at 4301.00, the Jun 8 low. This level represented a key short-term support and the clear break signals scope for a deeper retracement, exposing 4241.00, the May 31 low and an important medium-term support point. Key resistance and the bull trigger has been defined at 4438.00, the Jun 16 high. A bull theme in S&P E-minis remains intact and last week’s pullback appears to be a correction. The move lower is allowing a recent overbought condition to unwind. Initial key support lies at the 20-day EMA, at 4359.21. A break of this average would strengthen a short-term bearish theme and signal scope for a deeper pullback. On the upside, the bull trigger is 4493.75, the Jun 16 high. A break would open 4506.23 the top of a bull channel.

• Japan's NIKKEI closed lower by 82.73 pts or -0.25% at 32698.81 and the TOPIX ended 4.56 pts lower or -0.2% at 2260.17.
• Elsewhere, in China the SHANGHAI closed lower by 47.282 pts or -1.48% at 3150.619 and the HANG SENG ended 95.84 pts lower or -0.51% at 18794.13.
• Across Europe, Germany's DAX trades lower by 115.74 pts or -0.73% at 15719.42, FTSE 100 lower by 59.13 pts or -0.79% at 7403.66, CAC 40 down 56.74 pts or -0.79% at 7107.32 and Euro Stoxx 50 down 32.91 pts or -0.77% at 4239.22.
• Dow Jones mini down 66 pts or -0.19% at 33911, S&P 500 mini down 10.75 pts or -0.24% at 4378, NASDAQ mini down 48.5 pts or -0.32% at 15008.5.