Recent Move Lower in Eurostoxx 50 Futures Deemed Technically Corrective

Eurostoxx 50 futures have this week breached support at the Jan 5 low of 4444.0. The primary trend direction is up and the recent move lower is considered corrective. However, the break below 4444.00 and 4450.70, the 50-day EMA, suggests scope for an extension of the current bear cycle. This has opened 4370.00, the Nov 28 low. Initial resistance is 4536.00, the Jan 11 high. A break would highlight a potential reversal. S&P E-Minis are trading lower this week but - for now - price remains 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 4773.33 has been pierced. A clear break of this average would strengthen a short-term bearish threat and open the 50-day EMA, at 4687.54.

• Japan's NIKKEI closed lower by 11.58 pts or -0.03% at 35466.17 and the TOPIX ended 4.29 pts lower or -0.17% at 2492.09.
• Elsewhere, in China the SHANGHAI closed higher by 12.169 pts or +0.43% at 2845.784 and the HANG SENG ended 114.89 pts higher or +0.75% at 15391.79.
• Across Europe, Germany's DAX trades higher by 35.18 pts or +0.21% at 16469.15, FTSE 100 lower by 7.01 pts or -0.09% at 7441.35, CAC 40 up 28.92 pts or +0.4% at 7350.22 and Euro Stoxx 50 up 15.09 pts or +0.34% at 4420.16.
• Dow Jones mini down 8 pts or -0.02% at 37450, S&P 500 mini up 4.25 pts or +0.09% at 4775, NASDAQ mini up 56.75 pts or +0.34% at 16921.25.