EQUITIES: Recent Weakness in Eurostoxx 50 Futures Appears Technically Corrective

Recent weakness in Eurostoxx 50 futures appears to have been a correction. The recovery from 4947.00, the Jun 4 low, signals the end of the corrective cycle and attention is on key resistance and the bull trigger at 5110.00, the May 16 high. Clearance of this level would confirm a resumption of the uptrend. On the downside, a break of 4947.00 would instead expose 4894.90, a Fibonacci retracement. The uptrend in S&P E-Minis remains intact and last week’s gains reinforce this set-up. The contract has traded above 5368.25, the May 23 high and bull trigger. The move confirms a resumption of the uptrend. A continuation higher would signal scope for a climb towards the 5400.00 handle next. On the downside, key short-term support has been defined at 5205.50, the May 31 low. Clearance of this level is required to signal a short-term reversal.      

• Japan's NIKKEI closed higher by 354.23 pts or +0.92% at 39038.16 and the TOPIX ended 27.46 pts higher or +1% at 2782.49.
• Across Europe, Germany's DAX trades lower by 128.61 pts or -0.69% at 18419.2, FTSE 100 lower by 28.85 pts or -0.35% at 8215.43, CAC 40 down 138.82 pts or -1.73% at 7854.41 and Euro Stoxx 50 down 56.61 pts or -1.12% at 4991.27.
• Dow Jones mini down 81 pts or -0.21% at 38786, S&P 500 mini down 8.5 pts or -0.16% at 5348, NASDAQ mini down 26.25 pts or -0.14% at 19012.