EQUITIES: Trend Condition in Eurostoxx 50 Futures Remains Bullish

The trend condition in Eurostoxx 50 futures remains bullish. The recovery from the Jun 14 low is potentially an early reversal signal highlighting the end of the May 16 - Jun 14 correction. Resistance to watch is at 5039.84, a Fibonacci retracement. Clearance of this level would be a positive development. A reversal lower would signal a resumption of the bearish corrective cycle. This would open 4846.00, the Apr 19 low and a key support. The trend condition in S&P E-Minis is unchanged and signals remain bullish with the contract trading closer to its recent highs. Price has recently cleared 5430.75, the May 23 high and bull trigger. This confirmed a resumption of the uptrend. Note that moving average studies are in a bull-mode position too, highlighting positive market sentiment. Sights are on 5594.66 next, a Fibonacci projection. Initial support to watch lies at 5465.99, the 20-day EMA.

• Japan's NIKKEI closed higher by 493.92 pts or +1.26% at 39667.07 and the TOPIX ended 15.58 pts higher or +0.56% at 2802.95.
• Elsewhere, in China the SHANGHAI closed higher by 22.529 pts or +0.76% at 2972.525 and the HANG SENG ended 17.03 pts higher or +0.09% at 18089.93.
• Across Europe, Germany's DAX trades higher by 155.58 pts or +0.86% at 18333.31, FTSE 100 higher by 47.25 pts or +0.57% at 8294.96, CAC 40 up 28.87 pts or +0.38% at 7690.97 and Euro Stoxx 50 up 30.38 pts or +0.62% at 4966.18.
• Dow Jones mini up 6 pts or +0.02% at 39533, S&P 500 mini up 13 pts or +0.23% at 5549.75, NASDAQ mini up 87.25 pts or +0.44% at 20056.75.