Bull Cycle in Eurostoxx 50 Futures Remains Firmly Intact

The bull cycle in Eurostoxx 50 futures remains firmly intact and the contract is holding on to its recent gains. Moving average studies are in a bull-mode position too, highlighting positive market sentiment. Sights are on 4904.40 next, a Fibonacci projection. Further out, a bull channel top at 4955.20, marks an objective, The channel is drawn from the Oct 27 low. Initial firm support lies at 4734.40, the 20-day EMA. The trend condition in S&P E-Minis remains bullish, with the upside trigger at 5066.50 giving way to new highs at 5123.50 last week. This erases the initial pullback off last week and continues to highlight the fact that corrections remain shallow - a bullish signal. Support to watch is 4992.55, the 20-day EMA. A clear break of this EMA would signal potential for a deeper retracement towards the 4866.00 key support, Jan 31 low. A resumption of gains would open vol-band based resistance at 5133.43.

• Japan's NIKKEI closed higher by 135.03 pts or +0.35% at 39233.71 and the TOPIX ended 12.91 pts higher or +0.49% at 2673.62.
• Elsewhere, in China the SHANGHAI closed lower by 27.859 pts or -0.93% at 2977.022 and the HANG SENG ended 91.12 pts lower or -0.54% at 16634.74.
• Across Europe, Germany's DAX trades higher by 9.65 pts or +0.06% at 17428.83, FTSE 100 lower by 21.41 pts or -0.28% at 7685.74, CAC 40 down 36.19 pts or -0.45% at 7932.69 and Euro Stoxx 50 down 10.77 pts or -0.22% at 4862.43.
• Dow Jones mini down 71 pts or -0.18% at 39114, S&P 500 mini down 6.5 pts or -0.13% at 5095.25, NASDAQ mini down 21 pts or -0.12% at 17970.25.