EQUITIES: Recent Gains Reinforce Bullish Set Up for E-Mini S&P

Eurostoxx 50 futures traded higher last week. Attention is on resistance at 5039.84, the 61.8% retracement of the May 16 - Jun 14 sell-off. It was pierced Friday, a clear break of it would be a positive development and suggest scope for an extension of the bull cycle that started Jun 14. This would open 5082.32, the 76.4% retracement point. On the downside, a reversal would refocus attention on 4846.00, Apr 19 low and a key support. The trend condition in S&P E-Minis is bullish and Friday’s gains reinforce this set-up. Resistance at 5430.75, the May 23 high and bull trigger, has recently been cleared. This confirmed a resumption of the primary uptrend. The move higher last week confirmed a recent bull flag formation - a continuation signal - on the daily scale, further reinforcing bullish conditions. Sights are on 5668.00, a Fibonacci projection next. Support is at 5516.51, the 20-day EMA.

• Japan's NIKKEI closed lower by 131.67 pts or -0.32% at 40780.7 and the TOPIX ended 16.57 pts lower or -0.57% at 2867.61.
• Elsewhere, in China the SHANGHAI closed lower by 27.483 pts or -0.93% at 2922.45 and the HANG SENG ended 275.55 pts lower or -1.55% at 17524.06.
• Across Europe, Germany's DAX trades higher by 144.71 pts or +0.78% at 18616.84, FTSE 100 higher by 16.75 pts or +0.2% at 8220.59, CAC 40 up 68.74 pts or +0.9% at 7744.54 and Euro Stoxx 50 up 47.68 pts or +0.96% at 5026.79.
• Dow Jones mini up 19 pts or +0.05% at 39713, S&P 500 mini down 2 pts or -0.04% at 5619.5, NASDAQ mini down 14.25 pts or -0.07% at 20606.25.