EQUITIES: Recent Move Lower in E-Mini S&P Appears to Be a Correction

A bull cycle in Eurostoxx 50 futures remains intact, despite the pullback in prices early Friday. The move lower this week does undermine the bullish theme somewhat, with price having traded through the 50-day EMA, exposing the next support at 4860.00, the Jun 14 low. Clearance of this level would expose 4846.00, the Apr 19 low and a key reversal point. For bulls, a move higher and a break of 5087.00, the Jul 12 high, would again highlight a bullish theme. The trend condition in S&P E-Minis is bullish and yesterday’s move lower appears to be a correction. The continuation higher last week and this week’s cycle high, confirms a resumption of the uptrend and maintains the bullish sequence of higher highs and higher lows. MA studies are in a clear bull-mode set-up too, highlighting positive market sentiment. Sights are on 5741.34, a Fibonacci projection. Firm support is at 5597.81 the 20-day EMA.

• Japan's NIKKEI closed lower by 62.56 pts or -0.16% at 40063.79 and the TOPIX ended 7.8 pts lower or -0.27% at 2860.83.
• Elsewhere, in China the SHANGHAI closed higher by 5.176 pts or +0.17% at 2982.309 and the HANG SENG ended 360.73 pts lower or -2.03% at 17417.68.
• Across Europe, Germany's DAX trades lower by 159.03 pts or -0.87% at 18196, FTSE 100 lower by 48.59 pts or -0.59% at 8156.35, CAC 40 down 46.43 pts or -0.61% at 7541.09 and Euro Stoxx 50 down 29.58 pts or -0.61% at 4841.26.
• Dow Jones mini down 103 pts or -0.25% at 40856, S&P 500 mini down 8.25 pts or -0.15% at 5586.5, NASDAQ mini down 42.75 pts or -0.21% at 19856.5.