Bullish Theme in Eurostoxx 50 Futures Intact Despite Latest Pullback

A bullish theme in Eurostoxx 50 futures remains intact and the latest pullback is considered corrective. Last week’s gains confirm, once again, a resumption of the uptrend and maintain a bullish price sequence of higher highs and higher lows. Moving average studies are in a bull-mode position too, signalling a rising cycle. The focus is on 4636.70, a long-term Fibonacci retracement. Support to watch is at 4496.50, the 20-day EMA. A bullish theme in S&P e-minis remains intact and the contract has traded higher this week, confirming once again a resumption of the uptrend that started Oct 27. Note too that the contract has recently cleared resistance at 4738.50, the Jul 27 high, reinforcing current positive trend conditions. This signals scope for a climb towards 4854.75 next, a Fibonacci projection. On the downside, initial firm support lies at 4674.59, the 20-day EMA.

• Japan's NIKKEI closed higher by 456.55 pts or +1.37% at 33675.94 and the TOPIX ended 15.57 pts higher or +0.67% at 2349.38.
• Elsewhere, in China the SHANGHAI closed lower by 30.281 pts or -1.03% at 2902.11 and the HANG SENG ended 108.81 pts higher or +0.66% at 16613.81.
• Across Europe, Germany's DAX trades lower by 10.42 pts or -0.06% at 16734.16, FTSE 100 higher by 71.22 pts or +0.93% at 7709.86, CAC 40 down 6.73 pts or -0.09% at 7567.94 and Euro Stoxx 50 down 10.28 pts or -0.23% at 4525.12.
• Dow Jones mini down 27 pts or -0.07% at 37903, S&P 500 mini down 8.25 pts or -0.17% at 4812, NASDAQ mini down 52 pts or -0.31% at 16970.