Bearish Threat in E-Mini S&P Present Following Pullback From Jan 18 High

EUROSTOXX 50 futures traded lower last Thursday. The broader trend outlook remains bullish, however, the cycle is overbought and this warns of the potential for a short-term pullback. A move lower would allow the overbought reading to unwind. A resumption of weakness would open 4046.30, the 20-day EMA and a key near-term support. Key short-term resistance and the bull trigger has been defined at 4206.00, the Jan 18 high. S&P E-Minis have found support at 3901.75, the Jan 19 low. A short-term bearish threat remains present following the pullback last week from 4035.25, the Jan 18 high. Price has traded through support at the 50-day EMA. The average intersects at 3933.04 and a clear break would highlight a potential bearish reversal and expose 3891.50, Jan 10 low. On the upside, the contract needs to clear 4035.25 to cancel any developing bearish threat.

• Japan's NIKKEI closed higher by 352.51 pts or +1.33% at 26906.04 and the TOPIX ended 18.51 pts higher or +0.96% at 1945.38.
• Across Europe, Germany's DAX trades higher by 15.77 pts or +0.1% at 15049.38, FTSE 100 higher by 15.34 pts or +0.2% at 7785.62, CAC 40 down 6.28 pts or -0.09% at 6989.71 and Euro Stoxx 50 up 6.38 pts or +0.15% at 4126.28.
• Dow Jones mini up 2 pts or +0.01% at 33476, S&P 500 mini down 1.25 pts or -0.03% at 3987, NASDAQ mini down 2.5 pts or -0.02% at 11674.5.