EQUITIES: Recent Short-Term Weakness for E-Mini S&P Considered Corrective

Recent weakness in Eurostoxx 50 futures appears to have been corrective. The contract has found support at the 50-day EMA, at 5571.29. Support below the EMA lies at 5560.50, the base of a bull channel drawn from the Aug 1 low. A breach of this level and the 50-day EMA, is required to highlight a stronger reversal. Sights are on resistance and the bull trigger at 5742.00, the Oct 29 high. The trend condition in S&P E-Minis is unchanged, it remains bullish and short-term weakness appears corrective. Support at the 20-day EMA, at 6805.85, has been breached. A clear break of this average signals scope for a deeper retracement and exposes the 50-day EMA at 6706.92 - a key pivot support. The bull trigger has been defined at 6953.75, the Oct 30 high. Clearance of this hurdle would confirm a resumption of the uptrend.

• Japan's NIKKEI closed higher by 671.41 pts or +1.34% at 50883.68 and the TOPIX ended 45.16 pts higher or +1.38% at 3313.45.
• Elsewhere, in China the SHANGHAI closed higher by 38.512 pts or +0.97% at 4007.76 and the HANG SENG ended 550.49 pts higher or +2.12% at 26485.9.
• Across Europe, Germany's DAX trades lower by 37.03 pts or -0.15% at 24012.87, FTSE 100 lower by 19.83 pts or -0.2% at 9757.21, CAC 40 down 31.67 pts or -0.39% at 8042.56 and Euro Stoxx 50 down 3.35 pts or -0.06% at 5665.78.
• Dow Jones mini down 30 pts or -0.06% at 47410, S&P 500 mini down 1.75 pts or -0.03% at 6823.25, NASDAQ mini down 19.25 pts or -0.07% at 25727.5.