Short-Term Trend Condition in E-Mini S&P Remains Bearish

Eurostoxx 50 futures traded to a fresh cycle low Friday, before recovering. Despite the bounce, a bearish corrective cycle remains in play and the move down this month has allowed an overbought trend condition to unwind. The contract has traded through 4860.60, the 50-day EMA. A clear break of this average would signal scope for a deeper retracement and opens 4711.00, Feb 19 low. Initial firm resistance is 4923.80, the 20-day EMA. The short-term trend condition in S&P E-Minis is unchanged and remains bearish. Friday’s extension reinforces current short-term conditions. The contract has recently cleared support at the 50-day EMA, signalling scope for a continuation lower near-term. Sights are on 4907.57 next, a Fibonacci retracement. Firm resistance is seen at 5153.25, the 20-day EMA. A clear break of the average would signal a possible reversal.

• Japan's NIKKEI closed higher by 113.55 pts or +0.3% at 37552.16 and the TOPIX ended 3.77 pts higher or +0.14% at 2666.23.
• Elsewhere, in China the SHANGHAI closed lower by 22.617 pts or -0.74% at 3021.978 and the HANG SENG ended 317.24 pts higher or +1.92% at 16828.93.
• Across Europe, Germany's DAX trades higher by 118.73 pts or +0.66% at 17980.53, FTSE 100 higher by 27.38 pts or +0.34% at 8052.73, CAC 40 up 21.87 pts or +0.27% at 8062.84 and Euro Stoxx 50 up 34.69 pts or +0.7% at 4971.68.
• Dow Jones mini up 29 pts or +0.08% at 38500, S&P 500 mini up 5 pts or +0.1% at 5053.25, NASDAQ mini up 24.5 pts or +0.14% at 17379.25.