Eurostoxx 50 Futures Continue Recovery From Monday Low

The Eurostoxx 50 futures uptrend remains intact and the pair has recovered from Monday’s low. A bearish cycle since Jun 16 resulted in a correction. The contract breached support at 4301.00, the Jun 8 low. This level represented a key short-term support and an extension lower would expose 4241.00, the May 31 low and an important medium-term support point. Key resistance and the bull trigger has been defined at 4438.00, the Jun 16 high. A bull theme in S&P E-minis remains intact and the recent pullback still appears to be a correction. The latest move lower has allowed an overbought trend condition to unwind. Attention is on initial key support at the 20-day EMA, which intersects at 4370.75. A break of this average would strengthen a short-term bearish theme and signal scope for a deeper pullback. On the upside, the bull trigger is 4493.75, the Jun 16 high.

• Japan's NIKKEI closed higher by 40.15 pts or +0.12% at 33234.14 and the TOPIX ended 2.35 pts lower or -0.1% at 2296.25.
• Elsewhere, in China the SHANGHAI closed lower by 6.995 pts or -0.22% at 3182.381 and the HANG SENG ended 237.69 pts lower or -1.24% at 18934.36.
• Across Europe, Germany's DAX trades higher by 3.26 pts or +0.02% at 15952.49, FTSE 100 lower by 10.89 pts or -0.15% at 7489.61, CAC 40 up 25.56 pts or +0.35% at 7312.81 and Euro Stoxx 50 up 11.35 pts or +0.26% at 4356.71.
• Dow Jones mini up 42 pts or +0.12% at 34143, S&P 500 mini up 5 pts or +0.11% at 4422.5, NASDAQ mini up 28 pts or +0.19% at 15157.25.