EQUITIES: Technical Uptrend in E-Mini S&P Remains Intact

Eurostoxx 50 futures traded lower Tuesday, extending the current bear cycle. The recent move down appears to be a correction, but note that support at the 50-day EMA, at 4966.80, 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 5047.00, the Jun 3 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 has seen price pierce support at the 50-day EMA, at 5219.79. A clear break of this average would signal scope for a deeper retracement. The recovery from last 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 lower by 347.29 pts or -0.89% at 38490.17 and the TOPIX ended 39.26 pts lower or -1.41% at 2748.22.
• Elsewhere, in China the SHANGHAI closed lower by 25.796 pts or -0.83% at 3065.403 and the HANG SENG ended 19.15 pts lower or -0.1% at 18424.96.
• Across Europe, Germany's DAX trades higher by 97.88 pts or +0.53% at 18503.38, FTSE 100 higher by 9.57 pts or +0.12% at 8241.66, CAC 40 up 25.66 pts or +0.32% at 7963.83 and Euro Stoxx 50 up 34.59 pts or +0.7% at 4988.12.
• Dow Jones mini up 58 pts or +0.15% at 38846, S&P 500 mini up 6 pts or +0.11% at 5310.25, NASDAQ mini up 44.5 pts or +0.24% at 18745.5.