EQUITIES: Eurostoxx 50 Futures Continue to Trade Close to Recent Lows

Eurostoxx 50 futures continue to trade closer to their recent lows. For now, a bear threat remains present. The contract traded sharply lower on Oct 15 and has pierced the 50-day EMA, at 4947.73. A clear break of this average would undermine a recent bullish theme and highlight a stronger reversal. This would open 4884.06, a Fibonacci retracement. Key resistance and the bull trigger is 5106.00, the Sep 30 high. A breach of it would resume the uptrend. S&P E-Minis traded lower Wednesday and the contract remains below its recent highs. Short-term weakness is considered corrective and the uptrend remains intact. Price has traded through the 20-day EMA, at 5833.22, but is - for now - trading above this EMA. A clear break of this average would open 5749.80, the 50-day EMA. A stronger resumption of gains would refocus attention on 5961.00, a Fibonacci projection.

• Japan's NIKKEI closed lower by 229.37 pts or -0.6% at 37913.92 and the TOPIX ended 17.25 pts lower or -0.65% at 2618.32.
• Elsewhere, in China the SHANGHAI closed higher by 19.438 pts or +0.59% at 3299.7 and the HANG SENG ended 100.53 pts higher or +0.49% at 20590.15.
• Across Europe, Germany's DAX trades lower by 14.42 pts or -0.07% at 19428.18, FTSE 100 lower by 6.37 pts or -0.08% at 8262.98, CAC 40 down 20.56 pts or -0.27% at 7482.72 and Euro Stoxx 50 down 7.51 pts or -0.15% at 4927.94.
• Dow Jones mini up 46 pts or +0.11% at 42651, S&P 500 mini up 9.25 pts or +0.16% at 5858.25, NASDAQ mini up 42.25 pts or +0.21% at 20422.5.