Thursday Pullback Sees Equity Futures Trim Week's Gains

EUROSTOXX 50 futures remain above their recent lows. Price tested resistance at 3880.00 on Thursday, the 20-day EMA and a key short-term resistance. A clear breach of this hurdle would suggest potential for a stronger recovery. Gains are considered corrective - for now. A reversal lower and a break of 3753.00, the Dec 20 low, would confirm a resumption of the recent downtrend. The bull trigger is at 4043.00, Dec 13 high. S&P E-Minis trend signals are bearish and this week’s low prints reinforce this condition. The contract is trading above its recent lows. Short-term gains would be considered corrective with resistance at 3942.55, the 50-day EMA. A clear break of this hurdle is required to suggest potential for a stronger recovery. On the downside, a reversal lower would confirm a resumption of the downtrend. The focus is on 3778.45, a Fibonacci retracement.

• Japan's NIKKEI closed lower by 272.62 pts or -1.03% at 26235.25 and the TOPIX ended 10.23 pts lower or -0.54% at 1897.94.
• Elsewhere, in China the SHANGHAI closed lower by 8.565 pts or -0.28% at 3045.866 and the HANG SENG ended 86.16 pts lower or -0.44% at 19593.06.
• Across Europe, Germany's DAX trades higher by 21.14 pts or +0.15% at 13938.49, FTSE 100 higher by 5.89 pts or +0.08% at 7475.67, CAC 40 down 0.35 pts or -0.01% at 6519.4 and Euro Stoxx 50 up 1.08 pts or +0.03% at 3825.3.
• Dow Jones mini up 56 pts or +0.17% at 33272, S&P 500 mini up 2.75 pts or +0.07% at 3852.75, NASDAQ mini down 2 pts or -0.02% at 11054.