EQUITIES: Bear Threat in Eurostoxx 50 Futures Remains Present Despite Recovery

A bear threat in Eurostoxx 50 futures remains present and the latest climb appears to be a correction - for now. Attention is on first resistance at 4774.23, the 20-day EMA. A break of this hurdle would signal scope for a stronger retracement, towards key resistance at the 50-day EMA, at 4868.21. For bears, a reversal lower would signal the end of the correction and refocus attention on the bear trigger at 4494.00, the Aug 5 low. Short-term gains in S&P E-Minis are - for now - considered corrective. However, Tuesday’s strong rally delivered a print above the 50-day EMA, at 5454.71. A clear break of this average would undermine the recent bearish theme and instead signal scope for a stronger recovery. This would open 5579.35, a Fibonacci retracement. A reversal lower would refocus attention on the bear trigger at 5120.00, the Aug 5 low.

• Japan's NIKKEI closed higher by 284.21 pts or +0.78% at 36726.64 and the TOPIX ended 18.85 pts higher or +0.73% at 2600.75.
• Elsewhere, in China the SHANGHAI closed higher by 26.704 pts or +0.94% at 2877.358 and the HANG SENG ended 4.22 pts lower or -0.02% at 17109.14.
• Across Europe, Germany's DAX trades higher by 59.45 pts or +0.33% at 17944.88, FTSE 100 higher by 0.36 pts or +0% at 8281.52, CAC 40 up 8.15 pts or +0.11% at 7341.55 and Euro Stoxx 50 up 11.39 pts or +0.24% at 4738.74.
• Dow Jones mini up 69 pts or +0.17% at 40187, S&P 500 mini up 1.5 pts or +0.03% at 5478.5, NASDAQ mini up 11.75 pts or +0.06% at 19127.5.