Tuesday's Move Higher in E-Mini S&P Considered Technically Corrective

Eurostoxx 50 futures started this week on a bearish note with price trading lower Monday. This reinforces last week’s breach of a key support at the base of a bull channel drawn from the Oct 13 low. The break highlights a reversal of the uptrend that has been in place since late September 2022. The 50-day EMA has also been breached and this opens the 4000.00 handle next. On the upside, initial firm resistance is seen at 4232.10, the 20-day EMA. The short-term condition in S&P E-Minis remains bearish and Tuesday’s move higher is considered corrective. Price last week cleared key short-term support at 3960.75, Mar 2 low to confirm a resumption of the bear cycle that has been in place since Feb 2. The move lower signals scope for an extension towards 3822.00 next, the Dec 22 low. Initial firm resistance is seen at 4035.81, the 50-day EMA.

• Japan's NIKKEI closed higher by 7.44 pts or +0.03% at 27229.48 and the TOPIX ended 12.58 pts higher or +0.65% at 1960.12.
• Elsewhere, in China the SHANGHAI closed higher by 18.003 pts or +0.55% at 3263.315 and the HANG SENG ended 291.91 pts higher or +1.52% at 19539.87.
• Across Europe, Germany's DAX trades lower by 102.21 pts or -0.67% at 15130.96, FTSE 100 lower by 72.18 pts or -0.95% at 7565, CAC 40 down 84.68 pts or -1.19% at 7056.89 and Euro Stoxx 50 down 40.69 pts or -0.97% at 4138.78.
• Dow Jones mini down 115 pts or -0.36% at 32046, S&P 500 mini down 10.25 pts or -0.26% at 3910.25, NASDAQ mini down 17 pts or -0.14% at 12190.