Wednesday Price Action Confirms Resumption of Eurostoxx Future Downtrend

The Eurostoxx 50 futures move lower Wednesday marks a resumption of the current downtrend. The contract traded through Monday’s low and this reinforces last week’s breach of a key support at the base of a bull channel drawn from the Oct 13 low. The trendline break highlights a reversal of the uptrend that started late September 2022. The focus is on the 4000.00 handle next. Initial firm resistance is at 4212.50, the 20-day EMA. The short-term condition in S&P E-Minis remains bearish and short-term gains are 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 4031.46, the 50-day EMA.

• Japan's NIKKEI closed lower by 218.87 pts or -0.8% at 27010.61 and the TOPIX ended 23.02 pts lower or -1.17% at 1937.1.
• Elsewhere, in China the SHANGHAI closed lower by 36.424 pts or -1.12% at 3226.891 and the HANG SENG ended 335.96 pts lower or -1.72% at 19203.91.
• Across Europe, Germany's DAX trades higher by 80.8 pts or +0.55% at 14853.28, FTSE 100 higher by 45.46 pts or +0.62% at 7402.22, CAC 40 up 42.92 pts or +0.62% at 6944.35 and Euro Stoxx 50 up 24.47 pts or +0.61% at 4068.84.
• Dow Jones mini down 48 pts or -0.15% at 31869, S&P 500 mini down 2 pts or -0.05% at 3895.25, NASDAQ mini up 33.75 pts or +0.28% at 12291.75.