Short-Term Gains in Eurostoxx 50 Futures Considered Technically Corrective

Eurostoxx 50 futures trend conditions remain bearish and short-term gains appear to be corrective. The contract has traded below 4128.00, the Sep 27 low. This confirms a resumption of the downtrend that started late July and signals scope for a move towards 4055.40, a Fibonacci retracement point. Initial firm resistance is at 4207.30, the 20-day EMA. A break of this average would signal a possible short-term base. A bear cycle in S&P E-minis remains in play. The contract traded lower Wednesday, confirming a resumption of the bear leg once again. This maintains the price sequence of lower lows and lower highs and signals scope for weakness towards 4194.75, the May 24 low. Pivot resistance is 4441.61, the 50-day EMA. Ahead of the 50-day average is resistance at 4381.68, the 20-day EMA.

• Japan's NIKKEI closed lower by 80.69 pts or -0.26% at 30994.67 and the TOPIX ended 0.32 pts higher or +0.01% at 2264.08.
• Across Europe, Germany's DAX trades higher by 77.34 pts or +0.51% at 15148, FTSE 100 higher by 16.4 pts or +0.22% at 7467.92, CAC 40 up 24.19 pts or +0.35% at 7022.44 and Euro Stoxx 50 up 21.23 pts or +0.52% at 4121.04.
• Dow Jones mini up 27 pts or +0.08% at 33335, S&P 500 mini up 2.25 pts or +0.05% at 4293.5, NASDAQ mini up 8.75 pts or +0.06% at 14872.