EQUITIES: Break of 20-, 50-Day EMAs Reinforce Bearish Theme for E-Mini S&P

Eurostoxx 50 futures traded lower Thursday, reinforcing current bearish conditions. The contract has traded through a key support at 4846.00, the Apr 19 low. A clear break of this level would pave the way for an extension towards 4724.21, the 200 day MA on the continuation chart. Moving average studies are in a bear-mode set-up, highlighting a downtrend. Initial firm resistance to watch is 4980.00, the Jul 23 high. S&P E-Minis have traded lower this week and the move down has resulted in a break of both the 20- and 50-day EMAs. This reinforces a short-term bearish cycle and signals scope for an extension near-term. Note that the move down is considered corrective. Potential is seen for a move towards 5429.62, the lower band of a MA envelope, ahead of 5370.62 a Fibonacci retracement. Key short-term resistance is 5629.75, the Jul 23 high.

• Japan's NIKKEI closed lower by 202.1 pts or -0.53% at 37667.41 and the TOPIX ended 10.32 pts lower or -0.38% at 2699.54.
• Elsewhere, in China the SHANGHAI closed higher by 4.155 pts or +0.14% at 2890.897 and the HANG SENG ended 16.34 pts higher or +0.1% at 17021.31.
• Across Europe, Germany's DAX trades higher by 46.94 pts or +0.26% at 18345.37, FTSE 100 higher by 70.59 pts or +0.86% at 8256.63, CAC 40 up 65.77 pts or +0.89% at 7492.03 and Euro Stoxx 50 up 40.35 pts or +0.84% at 4851.23.
• Dow Jones mini up 189 pts or +0.47% at 40382, S&P 500 mini up 39.75 pts or +0.73% at 5481.25, NASDAQ mini up 181 pts or +0.95% at 19175.25.