EQUITIES: Trend Condition in Eurostoxx 50 Futures Still Bullish Despite Pullback

A bull cycle in Eurostoxx 50 futures remains intact despite the latest pullback - a correction. 5039.84, 61.8% of the May 16 - Jun 14 sell-off, has been cleared. This resulted in a print above 5082.32, the 76.4% retracement. A clear break of it would be a positive development and suggest scope for an extension towards 5132.00, the Jun 6 high. The 50-day EMA has been pierced, the next support is at 4903.00, the Jul 2 low. The trend condition in S&P E-Minis is bullish and the contract is holding on to its recent gains. The continuation higher last week confirmed a resumption of the uptrend and maintains the bullish sequence of higher highs and higher lows. Moving average studies are in a clear bull-mode set-up too and this continues to highlight positive market sentiment. Sights are on the 5741.34, a Fibonacci projection. Firm support is at 5593.47 the 20-day EMA.

• Japan's NIKKEI closed lower by 177.39 pts or -0.43% at 41097.69 and the TOPIX ended 10.71 pts higher or +0.37% at 2915.21.
• Elsewhere, in China the SHANGHAI closed lower by 13.449 pts or -0.45% at 2962.855 and the HANG SENG ended 11.43 pts higher or +0.06% at 17739.41.
• Across Europe, Germany's DAX trades lower by 39.95 pts or -0.22% at 18477.71, FTSE 100 lower by 22.72 pts or -0.28% at 8141.8, CAC 40 down 25.52 pts or -0.34% at 7554.67 and Euro Stoxx 50 down 41.7 pts or -0.84% at 4906.03.
• Dow Jones mini down 67 pts or -0.16% at 41190, S&P 500 mini down 41 pts or -0.72% at 5676.25, NASDAQ mini down 257 pts or -1.25% at 20340.5.