Bullish Eurostoxx Futures Trade Close to Recent Highs

The EUROSTOXX 50 futures trend condition remains bullish and the contract is trading closer to its recent highs. Recent trend highs maintain the recovery that started in early October and confirm an extension of the bullish price sequence of higher highs and higher lows. The recent break of 3810.00, Aug 17 high, also strengthened the case for bulls. The focus is on the 4000.00 psychological handle. Initial firm support is at 3840, the Nov 17 low. The S&P E-Minis outlook remains bullish despite the latest retracement - the move lower is considered corrective. Recent consolidation in the daily chart appears to be a flag formation. If correct, this is a bullish continuation pattern. The contract has recently breached 3928.00, Nov 1 high, establishing a positive price sequence of higher highs and higher lows. The focus is on 4100.00 next. Support to watch lies at 3887.16, the 50-day EMA.

• Japan's NIKKEI closed lower by 58.85 pts or -0.21% at 27968.99 and the TOPIX ended 7.4 pts lower or -0.37% at 1985.57.
• Elsewhere, in China the SHANGHAI closed higher by 1.587 pts or +0.05% at 3151.335 and the HANG SENG ended 392.55 pts higher or +2.16% at 18597.23.
• Across Europe, Germany's DAX trades higher by 81.37 pts or +0.57% at 14442.77, FTSE 100 higher by 20.02 pts or +0.27% at 7535.36, CAC 40 up 30.97 pts or +0.46% at 6704.62 and Euro Stoxx 50 up 20.03 pts or +0.51% at 3957.05.
• Dow Jones mini up 43 pts or +0.13% at 33898, S&P 500 mini up 6.75 pts or +0.17% at 3968.5, NASDAQ mini up 27.75 pts or +0.24% at 11552.5.