E-Mini S&P Continues Post-US Inflation Data Advance

Eurostoxx 50 futures are holding on to this week’s gains. The break higher has resulted in a move above the 50-day EMA at 4331.70 and price is through 4371.00, the Jul 6 high. Clearance of this latter level highlights a potentially stronger bull cycle and attention turns to key resistance and the bull trigger at 4447.00, the Jul 3 high. Key support and the bear trigger has been defined at 4220.00, the Jul 7 low. A bull theme in S&P E-minis remains intact. Yesterday’s gains resulted in a break of resistance at 4498.00, the Jun 30 high. This confirms a resumption of the uptrend and maintains a bullish price sequence of higher highs and higher lows. The contract has also traded through 4500.00 and this opens 4532.08, a Fibonacci projection. First support lies at 4428.89, the 20-day EMA. Clearance of this level would be a short-term bearish development.

• Japan's NIKKEI closed higher by 475.4 pts or +1.49% at 32419.33 and the TOPIX ended 21.51 pts higher or +0.97% at 2242.99.
• Elsewhere, in China the SHANGHAI closed higher by 40.346 pts or +1.26% at 3236.48 and the HANG SENG ended 489.67 pts higher or +2.6% at 19350.62.
• Across Europe, Germany's DAX trades higher by 65.65 pts or +0.41% at 16086.76, FTSE 100 higher by 16.06 pts or +0.22% at 7430.84, CAC 40 up 38.15 pts or +0.52% at 7369.35 and Euro Stoxx 50 up 22.15 pts or +0.51% at 4381.75.
• Dow Jones mini up 76 pts or +0.22% at 34629, S&P 500 mini up 15.75 pts or +0.35% at 4523.5, NASDAQ mini up 100.5 pts or +0.65% at 15544.5.