EQUITIES: Slip Lower in E-Mini S&P Last Week Appears to Be a Correction

A bull cycle in Eurostoxx 50 futures remains intact, despite the pullback in prices into the Friday close. The move lower last week undermines the bullish theme somewhat, with price having traded through the 50-day EMA, and the bear trigger has been tested 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 broader trend condition in S&P E-Minis is bullish and the slip lower into last week’s close appears to be a correction. The recent rally to cycle highs 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 5486.11 the 50-day EMA.

• Japan's NIKKEI closed lower by 464.79 pts or -1.16% at 39599 and the TOPIX ended 33.3 pts lower or -1.16% at 2827.53.
• Elsewhere, in China the SHANGHAI closed lower by 18.093 pts or -0.61% at 2964.216 and the HANG SENG ended 218.2 pts higher or +1.25% at 17635.88.
• Across Europe, Germany's DAX trades higher by 180.02 pts or +0.99% at 18353.15, FTSE 100 higher by 42.5 pts or +0.52% at 8198.17, CAC 40 up 79.81 pts or +1.06% at 7612.43 and Euro Stoxx 50 up 52.63 pts or +1.09% at 4879.07.
• Dow Jones mini up 71 pts or +0.18% at 40633, S&P 500 mini up 21.75 pts or +0.39% at 5575.25, NASDAQ mini up 124.25 pts or +0.63% at 19836.25.