Recent Move Lower in Eurostoxx 50 Futures Considered Technically Corrective

Eurostoxx 50 futures are trading just below the Jan 5 low of 4444.0. The primary trend direction is up and the recent move lower is considered corrective. MA studies are in a bull-mode position, signalling a rising trend cycle. However, a break of 4444.00 and 4450.00, the 50-day EMA, would undermine a bullish theme. This would open 4370.00, the Nov 28 low. For bulls, the trigger for a resumption of the uptrend is 4634.00, the Dec 14 high. S&P E-Minis continue to trade above the Jan 5 low. Key resistance and the bull trigger is unchanged at 4841.50, the Dec 28 high. A break of this level would resume the uptrend and open 4854.75, a Fibonacci projection. Support at the 20-day EMA of 4770.92 has recently been pierced. A clear break of this average would strengthen a short-term bearish threat and open the 50-day EMA, at 4679.50.

• Japan's NIKKEI closed lower by 282.61 pts or -0.79% at 35619.18 and the TOPIX ended 20.62 pts lower or -0.82% at 2503.98.
• Elsewhere, in China the SHANGHAI closed higher by 7.698 pts or +0.27% at 2893.989 and the HANG SENG ended 350.41 pts lower or -2.16% at 15865.92.
• Across Europe, Germany's DAX trades lower by 89.13 pts or -0.54% at 16534.25, FTSE 100 lower by 31.23 pts or -0.41% at 7563.43, CAC 40 down 29.79 pts or -0.4% at 7381.89 and Euro Stoxx 50 down 16.83 pts or -0.38% at 4437.85.
• Dow Jones mini down 149 pts or -0.39% at 37641, S&P 500 mini down 23.75 pts or -0.49% at 4792.75, NASDAQ mini down 112 pts or -0.66% at 16856.75.