E-Mini S&P Breaches 4035.25 Jan 17 High, Resuming Bullish Conditions

EUROSTOXX 50 futures traded lower last Thursday but prices have since recovered. The trend outlook is 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 and would open 4057.20, the 20-day EMA and a key near-term support. Key resistance and the bull trigger has been defined at 4206.00, the Jan 18 high. A break would resume the uptrend. S&P E-Minis traded higher Monday and breached resistance at 4035.25, the Jan 17 high. The break cancels a recent bearish threat and resumes short-term bullish conditions. Note that moving average studies are in a bull mode condition and this reinforces current trend conditions. The focus is on 4090.75 - last seen in mid-December. Key short-term support lies at 3901.75, the Jan 19 low. A break would reinstate a bearish threat.

• Japan's NIKKEI closed higher by 393.15 pts or +1.46% at 27299.19 and the TOPIX ended 27.54 pts higher or +1.42% at 1972.92.
• Across Europe, Germany's DAX trades higher by 4.93 pts or +0.03% at 15108.31, FTSE 100 lower by 35.96 pts or -0.46% at 7748.73, CAC 40 up 14.49 pts or +0.21% at 7046.51 and Euro Stoxx 50 up 3.62 pts or +0.09% at 4154.44.
• Dow Jones mini down 30 pts or -0.09% at 33697, S&P 500 mini down 2.75 pts or -0.07% at 4033.75, NASDAQ mini down 15 pts or -0.13% at 11919.25.