EQUITIES: Eurostoxx 50 Futures Continue to Trade Above Last Week's Lows

Eurostoxx 50 futures continue to trade above Thursday's low of 4950.00. The recent move down appears to be a correction, but note that support at the 50-day EMA, at 4967.00, has been pierced. A clear break of the average would undermine the short-term bullish theme and signal scope for a deeper retracement, towards 4894.90, a Fibonacci retracement. Initial resistance is seen at 5082.00, the May 28 high. 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 latest move down resulted in a print below support at the 50-day EMA, at 5216.53  A clear break of this average would signal scope for a deeper retracement. The recovery from Friday’s low is a positive development, a continuation would open 5368.25 and a breach of this level resumes the trend.      

• Japan's NIKKEI closed lower by 85.57 pts or -0.22% at 38837.46 and the TOPIX ended 10.59 pts lower or -0.38% at 2787.48.
• Elsewhere, in China the SHANGHAI closed higher by 12.71 pts or +0.41% at 3091.199 and the HANG SENG ended 41.07 pts higher or +0.22% at 18444.11.
• Across Europe, Germany's DAX trades lower by 109.75 pts or -0.59% at 18493.62, FTSE 100 lower by 46.45 pts or -0.56% at 8216.06, CAC 40 down 50.87 pts or -0.64% at 7946.07 and Euro Stoxx 50 down 36.26 pts or -0.72% at 4966.4.
• Dow Jones mini down 124 pts or -0.32% at 38543, S&P 500 mini down 20.25 pts or -0.38% at 5279.5, NASDAQ mini down 74.5 pts or -0.4% at 18582.75.