E-Mini S&P Extends Post-CPI Gains

A short-term bull cycle in Eurostoxx 50 futures remains intact and the contract traded higher Tuesday. Price has recently cleared resistance at both the 20- and 50-day EMAs - a bullish development. Note that yesterday’s gains resulted in a breach of resistance at 4256.00, the Oct 12 high. The focus is on 4329.80, a Fibonacci retracement. Initial support to watch is at 4176.00, the 20-day EMA. S&P e-minis maintain a firmer tone and the contract traded sharply higher yesterday, extending the current bull cycle. Resistance at 4422.00, a trendline drawn from the Jul 27 high, has been cleared. This reinforces bullish conditions and signals scope for gains towards 4552.38, a Fibonacci retracement. On the downside, initial firm support is seen at 4357.23, the 20-day EMA.

• Japan's NIKKEI closed higher by 823.77 pts or +2.52% at 33519.7 and the TOPIX ended 27.93 pts higher or +1.19% at 2373.22.
• Elsewhere, in China the SHANGHAI closed higher by 16.765 pts or +0.55% at 3072.835 and the HANG SENG ended 682.14 pts higher or +3.92% at 18079.
• Across Europe, Germany's DAX trades higher by 75.8 pts or +0.49% at 15690.99, FTSE 100 higher by 69.18 pts or +0.93% at 7509.8, CAC 40 up 44.15 pts or +0.61% at 7229.83 and Euro Stoxx 50 up 25.04 pts or +0.58% at 4316.76.
• Dow Jones mini up 58 pts or +0.17% at 34947, S&P 500 mini up 10.5 pts or +0.23% at 4521.5, NASDAQ mini up 59 pts or +0.37% at 15938.75.