S&P E-minis Recovery Suggests Entering Corrective Phase

EUROSTOXX 50 futures traded in a volatile manner last week, rebounding sharply from 3251.00, the Oct 13 low. The strong recovery highlights a potential short-term reversal and if correct, the start of a bull cycle. The focus is on the 50-day EMA at 3473.30 and resistance at 3492.00, the Oct 6 high. A break of this zone would strengthen a bullish case. On the downside, the key support zone to watch is at 3251.00-3236.00. A volatile session last Thursday in S&P E-Minis resulted in a strong bounce from the day low as well as the trend low of 3502.00. The recovery suggests that the contract has entered a corrective phase and if correct, this will allow an oversold trend condition to unwind. Attention is on 3724.56, the 20-day EMA. A break would reinforce a bullish theme and open 3820.00, the Oct 5 high. Key support and the bear trigger lies at 3502.00.

• Japan's NIKKEI closed lower by 314.97 pts or -1.16% at 26775.79 and the TOPIX ended 18.63 pts lower or -0.98% at 1879.56.
• Elsewhere, in China the SHANGHAI closed higher by 12.955 pts or +0.42% at 3084.942 and the HANG SENG ended 25.21 pts higher or +0.15% at 16612.9.
• Across Europe, Germany's DAX trades higher by 58.79 pts or +0.47% at 12496.84, FTSE 100 higher by 38.1 pts or +0.56% at 6897.22, CAC 40 up 24.61 pts or +0.41% at 5956.53 and Euro Stoxx 50 up 13.28 pts or +0.39% at 3395.01.
• Dow Jones mini up 209 pts or +0.7% at 29916, S&P 500 mini up 31.25 pts or +0.87% at 3628.75, NASDAQ mini up 111.5 pts or +1.04% at 10855.5.