Primary Trend Direction in Eurostoxx 50 Futures Remains Up

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 4439.30, 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 pullback in S&P E-Minis from recent highs has now cracked first material support at the 20-day EMA of 4745.34. This strengthens a short-term bearish threat and exposes 4696.72, the lower band of a MA envelope. A move through this support would expose the 50-day EMA, at 4650.64. The recent move lower is considered corrective and the primary uptrend remains intact. Key resistance and the bull trigger is 4841.50, the Dec 28 high.

• In China the SHANGHAI closed lower by 41.645 pts or -1.42% at 2887.538 and the HANG SENG ended 310.88 pts lower or -1.88% at 16224.45.
• Across Europe, Germany's DAX trades lower by 59.71 pts or -0.36% at 16536.66, FTSE 100 lower by 45.21 pts or -0.59% at 7646.26, CAC 40 down 37.77 pts or -0.51% at 7383.18 and Euro Stoxx 50 down 21.19 pts or -0.47% at 4442.57.
• Dow Jones mini down 245 pts or -0.65% at 37473, S&P 500 mini down 18.75 pts or -0.4% at 4715.75, NASDAQ mini down 79.75 pts or -0.48% at 16381.25.