Move Lower in E-Mini S&P Last Week Considered Technically Corrective

The primary trend direction in Eurostoxx 50 futures remains up and the recent move lower appears to be a correction. MA studies are in a bull-mode position, signalling a rising trend cycle. Key short-term support to watch lies at 4441.90, the 50-day EMA. A break of this level would signal scope for a deeper retracement and open 4370.00, the Nov 28 low. For bulls, a reversal higher would refocus attention on 4634.00, the Dec 14 high and bull trigger. The recent move lower in S&P E-Minis appears to have been a correction. Support at the 20-day EMA of 4750.67 has been pierced. A clear break of this average would strengthen a short-term bearish threat and expose 4695.69, the lower band of a MA envelope. A move through this support would expose the 50-day EMA, at 4656.58. For bulls, a continuation higher would expose key resistance and the bull trigger at 4841.50, the Dec 28 high.

• Japan's NIKKEI closed higher by 385.76 pts or +1.16% at 33763.18 and the TOPIX ended 19.55 pts higher or +0.82% at 2413.09.
• Elsewhere, in China the SHANGHAI closed higher by 5.713 pts or +0.2% at 2893.251 and the HANG SENG ended 34.43 pts lower or -0.21% at 16190.02.
• Across Europe, Germany's DAX trades lower by 37.66 pts or -0.23% at 16682.77, FTSE 100 lower by 1.26 pts or -0.02% at 7693.54, CAC 40 down 6.16 pts or -0.08% at 7444.08 and Euro Stoxx 50 down 13.59 pts or -0.3% at 4471.89.
• Dow Jones mini down 124 pts or -0.33% at 37808, S&P 500 mini down 14.75 pts or -0.31% at 4786.25, NASDAQ mini down 69.75 pts or -0.42% at 16732.5.