Index Futures Stage Sharp Rebound Amid Significant Volatility Thursday

EUROSTOXX 50 futures traded in a volatile manner Thursday, rebounding sharply from the day low of 3251.00. The contract is higher today and price has traded above the 20-day EMA. This highlights a short-term reversal and the start of a bull cycle. The focus is on the 50-day EMA at 3476.80 and resistance at 3492.00, the Oct 6 high. On the downside, the key support zone to watch is at 3251.00-3236.00.

A volatile session on Thursday in S&P E-Minis resulted in a strong bounce from the day low as well as the trend low of 3502.00. The recovery suggests that the contract has entered a corrective phase and if correct, this will allow an oversold trend condition to unwind. Attention is on 3737.94, the 20-day EMA. A break would reinforce a bullish theme and open 3820.00, the Oct 5 high. Key support and the bear trigger lies at 3502.00. bearish conditions resumed today - the contract has cleared support at 3571.75, the Oct 3 low and bear trigger. This signals scope for a move towards 3453.78 next, a Fibonacci projection. Key short-term resistance has been defined at 3820.00, the Oct 5 high.

• Japan's NIKKEI closed higher by 853.34 pts or +3.25% at 27090.76 and the TOPIX ended 43.58 pts higher or +2.35% at 1898.19.
• Elsewhere, in China the SHANGHAI closed higher by 55.631 pts or +1.84% at 3071.987 and the HANG SENG ended 198.58 pts higher or +1.21% at 16587.69.
• Across Europe, Germany's DAX trades higher by 138.57 pts or +1.12% at 12491.55, FTSE 100 higher by 76.83 pts or +1.12% at 6926.68, CAC 40 up 78.72 pts or +1.34% at 5956.18 and Euro Stoxx 50 up 45.86 pts or +1.36% at 3407.19.
• Dow Jones mini up 27 pts or +0.09% at 30120, S&P 500 mini up 3.25 pts or +0.09% at 3685.5, NASDAQ mini down 5 pts or -0.05% at 11079.5.