Friday's Rally in Eurostoxx 50 Futures Deemed Corrective

Eurostoxx 50 futures trend conditions remain bearish, with Friday’s rally deemed corrective in nature. For now, short-term gains appear corrective. The contract has traded below 4128.00, the Sep 27 low. This confirms a resumption of the downtrend that started late July and signals scope for a move towards 4055.40, a Fibonacci retracement point. Initial firm resistance is at 4207.30, the 20-day EMA. A break of this average would signal a possible short-term base. A bear cycle in S&P E-minis remains in play, despite Friday’s sharp corrective rally. The contract traded lower last Wednesday, confirming a resumption of the bear leg once again. This maintains the price sequence of lower lows and lower highs and signals scope for weakness towards 4194.75, the May 24 low. Pivot resistance is 4441.61, the 50-day EMA. Ahead of the 50-day average is resistance at 4381.68, the 20-day EMA.

• In China the SHANGHAI closed lower by 13.553 pts or -0.44% at 3096.922 and the HANG SENG ended 31.42 pts higher or +0.18% at 17517.4.
• Across Europe, Germany's DAX trades lower by 85.34 pts or -0.56% at 15143.9, FTSE 100 higher by 21.85 pts or +0.29% at 7517.02, CAC 40 down 33.4 pts or -0.47% at 7026.75 and Euro Stoxx 50 down 25.15 pts or -0.61% at 4119.28.
• Dow Jones mini down 188 pts or -0.56% at 33415, S&P 500 mini down 27 pts or -0.62% at 4314.75, NASDAQ mini down 103.25 pts or -0.68% at 15010.25.