Recovery in E-Mini S&P This Week Considered Corrective

A bearish theme in Eurostoxx 50 futures remains in play and the contract remains closer to its recent lows. The recent breach of support at 4082.00, the Oct 4 low and bear trigger, confirmed a resumption of the downtrend and this maintains the bearish price sequence of lower lows and lower highs. Moving average studies are in a bear-mode position too. Sights are on the 4000.00 handle. Initial firm resistance is at 4112.30, the 20-day EMA.S&P e-minis maintain a softer tone and the latest recovery appears to be a correction. The contract traded to a fresh cycle low last Friday. The recent breach of support at 4235.50, Oct 4 low and bear trigger, confirms a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. MA studies are in a bear-mode position too. The focus is on 4100.00. Initial firm resistance is at 4278.42, the 20-day EMA.

• Japan's NIKKEI closed higher by 742.8 pts or +2.41% at 31601.65 and the TOPIX ended 56.96 pts higher or +2.53% at 2310.68.
• Elsewhere, in China the SHANGHAI closed higher by 4.305 pts or +0.14% at 3023.076 and the HANG SENG ended 10.7 pts lower or -0.06% at 17101.78.
• Across Europe, Germany's DAX trades higher by 31.78 pts or +0.21% at 14842.15, FTSE 100 higher by 13.22 pts or +0.18% at 7334.92, CAC 40 up 16.75 pts or +0.24% at 6902.4 and Euro Stoxx 50 up 7.81 pts or +0.19% at 4068.93.
• Dow Jones mini down 94 pts or -0.28% at 33042, S&P 500 mini down 11 pts or -0.26% at 4201.25, NASDAQ mini down 41.5 pts or -0.29% at 14448.75.