EQUITIES: EuroStoxx 50 Futures Softer But Holding Onto Bulk Wednesday's Gains

A gap higher yesterday in EuroStoxx 50 futures strengthens a short–term bullish theme and highlights an extension of the reversal from the Mar 23 low. The contract has traded through both the 20- and 50-day EMAs, paving the way for a climb towards 5945.47, a Fibonacci retracement point. Note that a break of 5945.47 would expose the key resistance at 6143.00, the Feb 26 high. First key support to watch lies at 5525.00, the Apr 2 low. A strong rally in S&P E-Minis on Wednesday highlights an extension of the reversal that started Mar 31. Note that trend signals remain bearish and for now, gains are considered corrective. A continuation higher would open 6921.09 next, a Fibonacci retracement point. Key medium-term resistance and the bull trigger is far off at 7096.50, the Jan 28 high. Initial firm support to watch lies at 6567.00, the Apr 6 low.

• Japan's NIKKEI closed lower by 413.1 pts or -0.73% at 55895.32 and the TOPIX ended 33.83 pts lower or -0.9% at 3741.47.
• Elsewhere, in China the SHANGHAI closed lower by 28.827 pts or -0.72% at 3966.171 and the HANG SENG ended 140.62 pts lower or -0.54% at 25752.4.
• Across Europe, Germany's DAX trades lower by 287.48 pts or -1.19% at 23791.38, FTSE 100 lower by 28.22 pts or -0.27% at 10580.65, CAC 40 down 56.78 pts or -0.69% at 8207.09 and Euro Stoxx 50 down 49.25 pts or -0.83% at 5864.12.
• Dow Jones mini down 181 pts or -0.38% at 47963, S&P 500 mini down 25.25 pts or -0.37% at 6798.5, NASDAQ mini down 82.25 pts or -0.33% at 24991.5.