EQUITIES: Friday's Sharp E-Mini S&P Pullback Considered Corrective

Trend signals in EuroStoxx 50 futures continue to highlight a dominant bull cycle, highlighted by moving average studies that remain in a bull-mode position. The recent pause appears to be a flag formation - a bullish continuation pattern. A resumption of gains would pave the way for a climb towards 6200.00 next. Firm support lies at 5916.20, the 50-day EMA. The latest move lower is considered corrective. The trend in S&P E-Minis is bullish and pullback’s appear corrective. Friday’s move down resulted in the break of an important short-term support at 7473.03, the 20-day EMA. The clear breach of this average suggests scope for a deeper short-term retracement towards 7280.56, the 50-day EMA. Note that the 50-day EMA is considered a key support. Key resistance and the bull trigger is 7632.25, the Jun 1 high.

• Japan's NIKKEI closed lower by 2563.52 pts or -3.85% at 64024.6 and the TOPIX ended 96.71 pts lower or -2.45% at 3852.38.
• Elsewhere, in China the SHANGHAI closed lower by 68.398 pts or -1.7% at 3959.338 and the HANG SENG ended 304.89 pts lower or -1.22% at 24657.06.
• Across Europe, Germany's DAX trades lower by 250.3 pts or -1.01% at 24509.74, FTSE 100 lower by 42.65 pts or -0.41% at 10325.37, CAC 40 down 69.35 pts or -0.84% at 8149.13 and Euro Stoxx 50 down 51.37 pts or -0.85% at 6010.7.
• Dow Jones mini down 177 pts or -0.35% at 50757, S&P 500 mini up 14.5 pts or +0.2% at 7414.75, NASDAQ mini up 170.75 pts or +0.59% at 29196.75.