Sharp Sell-Off in E-Mini S&P Deemed Technically Corrective For Now

A bullish theme in Eurostoxx 50 futures remains intact and the latest pullback appears to be a correction. Recent gains confirmed, once again, a resumption of the uptrend and this has maintained the bullish price sequence of higher highs and higher lows. Moving average studies are in a bull-mode position too, signalling a rising cycle. The focus is on 4636.70, a long-term Fibonacci retracement. Support to watch is at 4503.90, the 20-day EMA. A bullish theme in S&P e-minis remains intact and yesterday’s abrupt sell-off appears to be a correction - for now. This week’s fresh trend highs, confirm once again a resumption of the uptrend that started Oct 27. The contract has recently cleared resistance at 4738.50, the Jul 27 high, reinforcing current positive trend conditions. Sights are on 4854.75 next, a Fibonacci projection. On the downside, initial firm support lies at 4681.74, the 20-day EMA.

• Japan's NIKKEI closed lower by 535.47 pts or -1.59% at 33140.47 and the TOPIX ended 23.4 pts lower or -1% at 2325.98.
• Elsewhere, in China the SHANGHAI closed higher by 16.605 pts or +0.57% at 2918.715 and the HANG SENG ended 7.32 pts higher or +0.04% at 16621.13.
• Across Europe, Germany's DAX trades lower by 60.31 pts or -0.36% at 16673.22, FTSE 100 lower by 14.88 pts or -0.19% at 7700.42, CAC 40 down 27.76 pts or -0.37% at 7555.67 and Euro Stoxx 50 down 17.32 pts or -0.38% at 4516.5.
• Dow Jones mini up 181 pts or +0.48% at 37624, S&P 500 mini up 27 pts or +0.57% at 4776.5, NASDAQ mini up 119.75 pts or +0.71% at 16885.5.