EQUITIES: Recovery in E-Mini S&P From Friday's Low a Positive Development

Eurostoxx 50 futures traded lower last week but prices have recovered from Thursday's low of 4950.00. The recent move down appears to have been a correction, but note that support at the 50-day EMA - at 4965.20 - 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 5213.24  A clear break of this EMA 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 higher by 435.13 pts or +1.13% at 38923.03 and the TOPIX ended 25.58 pts higher or +0.92% at 2798.07.
• Elsewhere, in China the SHANGHAI closed lower by 8.324 pts or -0.27% at 3078.489 and the HANG SENG ended 323.43 pts higher or +1.79% at 18403.04.
• Across Europe, Germany's DAX trades higher by 178.18 pts or +0.96% at 18675.59, FTSE 100 higher by 29.44 pts or +0.36% at 8304.84, CAC 40 up 50.4 pts or +0.63% at 8043.27 and Euro Stoxx 50 up 47.11 pts or +0.95% at 5030.78.
• Dow Jones mini up 3 pts or +0.01% at 38796, S&P 500 mini up 9.25 pts or +0.17% at 5305, NASDAQ mini up 72.75 pts or +0.39% at 18663.