EQUITIES: Wednesday's Gains for Eurostoxx Futures Highlight a Corrective Cycle

Eurostoxx 50 futures have recovered from Tuesday’s low. Recent gains highlight a corrective cycle and the rally marks an unwinding of a recent oversold trend condition. The 20-day EMA has been cleared. The next key resistance to watch is 5102.45, the 50-day EMA. Key support and the bear trigger has been defined at 4444.00, the Apr 7 low. A break of this level would confirm a resumption of the downtrend. The bull cycle in S&P E-Minis that started on Apr 7 is considered corrective. The trend condition has been oversold following recent weakness and gains have allowed this to unwind. Price has traded above the 20-day EMA, at 5423.30. This exposes 5528.75, the Apr 10 high. Note that resistance at the 50-day EMA - a key level too - is at 5630.01. For bears, a resumption of weakness would refocus attention on 4832.00, the Apr 7 low and bear trigger.

• Japan's NIKKEI closed higher by 170.52 pts or +0.49% at 35039.15 and the TOPIX ended 8.24 pts higher or +0.32% at 2592.56.
• Elsewhere, in China the SHANGHAI closed higher by 0.933 pts or +0.03% at 3297.288 and the HANG SENG ended 162.86 pts lower or -0.74% at 21909.76.
• Across Europe, Germany's DAX trades lower by 204.67 pts or -0.93% at 21757.42, FTSE 100 lower by 25.18 pts or -0.3% at 8377.94, CAC 40 down 59 pts or -0.79% at 7423.36 and Euro Stoxx 50 down 47.33 pts or -0.93% at 5051.41.
• Dow Jones mini down 340 pts or -0.85% at 39437, S&P 500 mini down 41.25 pts or -0.76% at 5360.25, NASDAQ mini down 187.25 pts or -1% at 18615.5.