Eurostoxx 50 Futures Breach Key Support Level Following Sharp Drop Thursday

Eurostoxx 50 futures traded sharply lower Thursday, clearing a number of key support levels in the process. The contract has breached the key level at 4241.00, the May 31 low. This highlights a potential reversal and signals scope for weakness towards 4208.50, a Fibonacci retracement point. On the upside, key short-term resistance is seen at 4335.20, the 50-day EMA. A break of this average would ease bearish pressure. A bull theme in S&P E-minis remains intact and the pullback this week appears to be a correction - for now. Attention is on the first support 4409.66, the 20-day EMA. Clearance of this level would expose 4368.50, the Jun 26 low and a key support. On Monday, the contract pierced key resistance and the bull trigger at 4493.75, the Jun 16 high. A clear breach of this level would confirm a resumption of the uptrend opening 4532.08, a Fibonacci projection.

• Japan's NIKKEI closed lower by 384.6 pts or -1.17% at 32388.42 and the TOPIX ended 22.18 pts lower or -0.97% at 2254.9.
• Elsewhere, in China the SHANGHAI closed lower by 8.966 pts or -0.28% at 3196.609 and the HANG SENG ended 167.35 pts lower or -0.9% at 18368.95.
• Across Europe, Germany's DAX trades lower by 17.95 pts or -0.12% at 15476.17, FTSE 100 lower by 37.84 pts or -0.52% at 7235.21, CAC 40 down 3.85 pts or -0.05% at 7062.3 and Euro Stoxx 50 down 11.1 pts or -0.26% at 4202.87.
• Dow Jones mini down 59 pts or -0.17% at 34080, S&P 500 mini down 7.5 pts or -0.17% at 4439, NASDAQ mini down 34.25 pts or -0.22% at 15196.25.