EQUITIES: Trend Signals in EuroStoxx Futures Continue to Point North

Trend signals in EuroStoxx 50 futures are pointing north, 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 5922.78, the 50-day EMA. A clear break of the average would undermine the bull theme. The trend in S&P E-Minis is bullish and short-term pullback’s appear corrective. Friday’s move down resulted in the break of an important short-term support at 7467.60, the 20-day EMA. The clear breach of this average suggests scope for a deeper short-term retracement towards 7285.93, 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 higher by 1392.03 pts or +2.17% at 65416.63 and the TOPIX ended 43.73 pts higher or +1.14% at 3896.11.
• Elsewhere, in China the SHANGHAI closed higher by 50.693 pts or +1.28% at 4010.031 and the HANG SENG ended 91.16 pts lower or -0.37% at 24565.9.
• Across Europe, Germany's DAX trades higher by 127.06 pts or +0.52% at 24744.12, FTSE 100 lower by 28.99 pts or -0.28% at 10345.21, CAC 40 up 68.57 pts or +0.84% at 8267.38 and Euro Stoxx 50 up 54.75 pts or +0.9% at 6116.91.
• Dow Jones mini up 70 pts or +0.14% at 50926, S&P 500 mini up 25.25 pts or +0.34% at 7441.5, NASDAQ mini up 190.75 pts or +0.65% at 29644.25.