EQUITIES: E-Mini S&P Narrows Gap to Support at 50-day EMA

Eurostoxx 50 futures have traded lower this week and the contract remains soft. This week’s pullback - a correction - has resulted in a breach of the 20- and 50-day EMAs. The 50-day average lies at 4964.40 and a clear break of it would undermine the recent short-term bullish theme and signal scope for a deeper retracement. This would open 4894.90, a Fibonacci retracement. Initial resistance is seen at 5019.60, the 20-day EMA. The uptrend in S&P E-Minis remains intact, however, a corrective cycle has resulted in a pullback from the recent high of 5368.25 (May 23). The contract has traded through the 20-day EMA and this exposes a firmer support at 5209.88, the 50-day EMA. A clear break of this average would signal scope for a deeper retracement. On the upside, a resumption of gains and a break of 5368.25, would confirm a resumption of the uptrend.      

• Japan's NIKKEI closed higher by 433.77 pts or +1.14% at 38487.9 and the TOPIX ended 46.29 pts higher or +1.7% at 2772.49.
• Elsewhere, in China the SHANGHAI closed lower by 4.865 pts or -0.16% at 3086.813 and the HANG SENG ended 150.58 pts lower or -0.83% at 18079.61.
• Across Europe, Germany's DAX trades higher by 7.61 pts or +0.04% at 18502.48, FTSE 100 higher by 25.95 pts or +0.32% at 8257.02, CAC 40 up 7.94 pts or +0.1% at 7986.45 and Euro Stoxx 50 up 8.76 pts or +0.18% at 4990.94.
• Dow Jones mini up 8 pts or +0.02% at 38237, S&P 500 mini down 5.25 pts or -0.1% at 5247.75, NASDAQ mini down 45.5 pts or -0.24% at 18561.