Eurostoxx Futures More Steady Following Sharp Monday Sell Off

Eurostoxx 50 futures started the week on a bearish note with price trading lower Monday. This reinforces Friday’s breach of a key support at the base of a bull channel drawn from the Oct 13 low. The break highlights a reversal of the uptrend that has been in place since late September 2022. The 50-day EMA has been breached and this opens the 4000.00 handle next. On the upside, initial firm resistance is seen at 4238.20, the 20-day EMA. The short-term condition in S&P E-Minis remains bearish and Monday’s move lower reinforces this theme. Price last week cleared key short-term support at 3960.75, the Mar 2 low to confirm a resumption of the bear cycle that has been in place since the Feb 2 reversal. The move lower signals scope for an extension towards 3822.00 next, the Dec 22 low. Initial firm resistance is seen at 4039.14, the 50-day EMA.

• Japan's NIKKEI closed lower by 610.92 pts or -2.2% at 27222.04 and the TOPIX ended 53.45 pts lower or -2.67% at 1947.54.
• Elsewhere, in China the SHANGHAI closed lower by 23.384 pts or -0.72% at 3245.312 and the HANG SENG ended 448.01 pts lower or -2.27% at 19247.96.
• Across Europe, Germany's DAX trades higher by 61.74 pts or +0.41% at 15019.18, FTSE 100 lower by 25.28 pts or -0.33% at 7523.15, CAC 40 up 2.57 pts or +0.04% at 7014.53 and Euro Stoxx 50 up 9.31 pts or +0.23% at 4105.1.
• Dow Jones mini up 125 pts or +0.39% at 31975, S&P 500 mini up 19 pts or +0.49% at 3877, NASDAQ mini up 65.5 pts or +0.55% at 11999.25.