EQUITIES: Short-Term Weakness in E-Mini S&P Considered Corrective
Eurostoxx 50 futures are in consolidation mode and continue to trade closer to their recent lows. For now, a bear threat is present. The contract traded sharply lower on Oct 15 and pierced the 50-day EMA, at 4948.02. 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. S&P E-Minis continues to trade below its recent highs. Short-term weakness is considered corrective and the uptrend remains intact. Price has recently traded through support at the 20-day EMA, at 5854.44, but is - for now - trading above this average. A clear bearish break of the EMA would open 5753.57, the 50-day EMA. A stronger resumption of gains would refocus attention on 5961.00, a Fibonacci projection.
- Japan's NIKKEI closed higher by 691.61 pts or +1.82% at 38605.53 and the TOPIX ended 39.46 pts higher or +1.51% at 2657.78.
- Elsewhere, in China the SHANGHAI closed higher by 22.498 pts or +0.68% at 3322.198 and the HANG SENG ended 9.21 pts higher or +0.04% at 20599.36.
- Across Europe, Germany's DAX trades higher by 64.62 pts or +0.33% at 19527.72, FTSE 100 higher by 8.23 pts or +0.1% at 8257.53, CAC 40 up 66.68 pts or +0.89% at 7563.26 and Euro Stoxx 50 up 31.47 pts or +0.64% at 4974.04.
- Dow Jones mini up 213 pts or +0.5% at 42530, S&P 500 mini up 35.75 pts or +0.61% at 5882, NASDAQ mini up 161.5 pts or +0.79% at 20661.