Eurostoxx Futures Continue to Push Back Against Bearish Trend

Eurostoxx 50 futures continue to push back against the recent bearish trend condition. Friday’s rally and the follow through early this week is, for now, deemed corrective in nature. Signs of further strength and a bottoming of prices would follow a break back above the 50-day EMA - a key level on Thursday at 4257.70. A break of this average would signal a possible short-term base, opening levels last seen in mid-September. The E-Mini S&P printed a higher high for a fifth consecutive session on Thursday before fading into the close. The index has narrowed in on the cluster of resistance at the 50/100-dmas for the Dec contract. Overall, a bear cycle remains in play, however downside momentum has paused in favour of a corrective rally. Pivot resistance remains above at the 50-day EMA at 4431.80, with the medium-term outlook remaining bearish the longer price holds below this level.

• Japan's NIKKEI closed lower by 178.67 pts or -0.55% at 32315.99 and the TOPIX ended 33.74 pts lower or -1.44% at 2308.75.
• Elsewhere, in China the SHANGHAI closed lower by 19.802 pts or -0.64% at 3088.099 and the HANG SENG ended 424.76 pts lower or -2.33% at 17813.45.
• Across Europe, Germany's DAX trades lower by 55.18 pts or -0.36% at 15368.12, FTSE 100 lower by 5.73 pts or -0.08% at 7638.69, CAC 40 down 22.46 pts or -0.32% at 7082.11 and Euro Stoxx 50 down 14.97 pts or -0.36% at 4183.38.
• Dow Jones mini up 52 pts or +0.15% at 33848, S&P 500 mini up 3.75 pts or +0.09% at 4384.25, NASDAQ mini down 7 pts or -0.05% at 15306.75.