Recent Pullback in E-Mini S&Ps Appears Technically Corrective

The Eurostoxx 50 futures uptrend remains intact, however, a bearish cycle since Jun 16 resulted in a correction. The contract has breached support at 4301.00, the Jun 8 low. This level represented a key short-term support and the clear break signals scope for a deeper retracement, exposing 4241.00, the May 31 low and an important medium-term support point. Key resistance and the bull trigger has been defined at 4438.00, the Jun 16 high. A bull theme in S&P E-minis remains intact and the recent pullback appears to be a correction. The move lower is allowing a recent overbought condition to unwind. Initial key support lies at the 20-day EMA, at 4360.26. A break of this average would strengthen a short-term bearish theme and signal scope for a deeper pullback. On the upside, the bull trigger is 4493.75, the Jun 16 high. A break would open 4506.23 the top of a bull channel.

• Japan's NIKKEI closed lower by 160.48 pts or -0.49% at 32538.33 and the TOPIX ended 6.36 pts lower or -0.28% at 2253.81.
• Elsewhere, in China the SHANGHAI closed higher by 38.824 pts or +1.23% at 3189.443 and the HANG SENG ended 354 pts higher or +1.88% at 19148.13.
• Across Europe, Germany's DAX trades lower by 9.51 pts or -0.06% at 15803.75, FTSE 100 higher by 8.75 pts or +0.12% at 7462.34, CAC 40 up 3.69 pts or +0.05% at 7188.04 and Euro Stoxx 50 up 8.36 pts or +0.2% at 4288.93.
• Dow Jones mini up 21 pts or +0.06% at 33988, S&P 500 mini up 7.75 pts or +0.18% at 4377.5, NASDAQ mini up 48.5 pts or +0.33% at 14902.75.