Equity Futures Consolidate Close to Recent Lows

EUROSTOXX 50 futures remain in a bear mode position and yesterday’s low print reinforces this theme. The break lower has resulted in a breach of the 50-day EMA - at 3799.80. Price is back above the EMA but short-term gains are considered corrective. A continuation lower would open 3720.00 next, the Nov 10 low. On the upside, initial firm resistance is seen at the 20-day EMA - it intersects at 3887.20. S&P E-Minis remain soft and yesterday's low print reinforces bearish conditions. The move lower has also reinforced recent reversal signals - a shooting star candle on Dec 13 followed by a break on Dec 15, of support at 3945.75, the Dec 7 low. The focus is on 3778.45, a Fibonacci projection. On the upside, initial firm resistance is seen at 3948.02, the 50-day EMA. A break of this EMA is required to ease bearish pressure.

• Japan's NIKKEI closed lower by 180.31 pts or -0.68% at 26387.72 and the TOPIX ended 12.27 pts lower or -0.64% at 1893.32.
• Elsewhere, in China the SHANGHAI closed lower by 5.356 pts or -0.17% at 3068.41 and the HANG SENG ended 65.69 pts higher or +0.34% at 19160.49.
• Across Europe, Germany's DAX trades higher by 104.27 pts or +0.75% at 13992.12, FTSE 100 higher by 32.81 pts or +0.45% at 7404.29, CAC 40 up 54.04 pts or +0.84% at 6504.47 and Euro Stoxx 50 up 31.75 pts or +0.84% at 3834.24.
• Dow Jones mini up 222 pts or +0.67% at 33277, S&P 500 mini up 22.5 pts or +0.58% at 3871.75, NASDAQ mini up 71.5 pts or +0.64% at 11247.75.