EQUITIES: Eurostoxx 50 Futures Continue to Trade at Their Recent Lows

Eurostoxx 50 futures continue to trade at their recent lows. The latest pullback has resulted in a breach of the 50-day EMA at 5297.44. Price has also pierced 5255.00, the May 23 low. A clear break of both support points would signal a short-term top and highlight scope for a deeper retracement. This would open 5178.00, the May 6 low, and 5081.16, a Fibonacci retracement. Initial resistance to watch is 5347.51, the 20-day EMA. The trend condition in S&P E-Minis remains bullish. For now, the most recent shallow pullback is considered corrective. The contract has pierced support at 6006.73, the 20-day EMA. A clear breach of this average would suggest potential for a deeper retracement and expose the 50-day EMA, at 5902.27. Key short-term resistance and the bull trigger has been defined at 6128.75, the Jun 11 high.

• Japan's NIKKEI closed lower by 396.81 pts or -1.02% at 38488.34 and the TOPIX ended 16.27 pts lower or -0.58% at 2792.08.
• Elsewhere, in China the SHANGHAI closed lower by 26.701 pts or -0.79% at 3362.108 and the HANG SENG ended 472.95 pts lower or -1.99% at 23237.74.
• Across Europe, Germany's DAX trades lower by 117.48 pts or -0.5% at 23200.33, FTSE 100 lower by 32.93 pts or -0.37% at 8810.56, CAC 40 down 52.78 pts or -0.69% at 7603.34 and Euro Stoxx 50 down 35.36 pts or -0.67% at 5231.55.
• Dow Jones mini down 181 pts or -0.43% at 42007, S&P 500 mini down 25.75 pts or -0.43% at 5955.5, NASDAQ mini down 112.25 pts or -0.52% at 21608.