Bounce Fades, But Still Within Range of Recent Highs

S&P E-Minis traded higher Tuesday, extending Monday’s reversal from 3571.75. Monday’s candle pattern is a bullish engulfing line and this highlights an important short-term trend reversal. EUROSTOXX 50 futures have established a bullish short-term tone following this week’s strong reversal. A corrective cycle has been established and this is allowing a recent oversold trend condition to unwind. Note Chinese markets remain closed for Golden Week.

• Japan's NIKKEI closed higher by 128.32 pts or +0.48% at 27120.53 and the TOPIX ended 6.03 pts higher or +0.32% at 1912.92.
• Across Europe, Germany's DAX trades lower by 31.7 pts or -0.25% at 12640.12, FTSE 100 lower by 30.06 pts or -0.42% at 7055.95, CAC 40 down 10.97 pts or -0.18% at 6027.91 and Euro Stoxx 50 down 10.26 pts or -0.29% at 3473.77.
• Dow Jones mini down 198 pts or -0.65% at 30164, S&P 500 mini down 25.5 pts or -0.67% at 3777.5, NASDAQ mini down 74.75 pts or -0.64% at 11566.25.