Uptrend in Eurostoxx 50 Futures Intact Despite Bearish Corrective Cycle This Week

The Eurostoxx 50 futures uptrend remains intact, however, a bearish corrective cycle this week has resulted in a correction. The contract has pierced support at 4301.00, the Jun 8 low. This is a key short-term support and a clear break would signal scope for a deeper retracement, exposing 4241.00, the May 31 low and a key support. Key resistance and the bull trigger has been defined at 4438.00, the Jun 16 high. A bull theme in S&P E-minis remains intact and this week’s pullback appears to be a correction. This is allowing a recent overbought condition to unwind. Initial key support lies at the 20-day EMA which intersects at 4356.07. A break of this average would strengthen a short-term bearish theme and signal scope for a deeper pullback. On the upside, the bull trigger is 4493.75, the Jun 16 high. A break would open 4500.21, the top of a bull channel.

• Japan's NIKKEI closed lower by 483.34 pts or -1.45% at 32781.54 and the TOPIX ended 31.77 pts lower or -1.38% at 2264.73.
• Across Europe, Germany's DAX trades lower by 95.49 pts or -0.6% at 15891.95, FTSE 100 lower by 12.76 pts or -0.17% at 7489.02, CAC 40 down 18.21 pts or -0.25% at 7184.99 and Euro Stoxx 50 down 16.98 pts or -0.39% at 4287.31.
• Dow Jones mini down 85 pts or -0.25% at 34127, S&P 500 mini down 18.25 pts or -0.41% at 4405.5, NASDAQ mini down 88 pts or -0.58% at 15126.75.