E-Mini S&P Price Action Confirms Resumption of Bull Cycle, Despite Latest Pullback

The EUROSTOXX 50 futures trend needle continues to point north. Resistance at 4206.00, the Jan 18 high, has been breached. The clear break confirms a resumption of the current uptrend and paves the way for gains towards 4269.50, a Fibonacci projection. Note that the trend remains overbought. A pullback, if seen, would represent a healthy correction. A break of 4097.00, the Jan 19 low, would signal the start of a short-term bear cycle. S&P E-Minis traded higher last week and in the process cleared recent highs to confirm a resumption of the current bull cycle that started Dec 22. A key resistance and a bull trigger at 4180.00, the Dec 13 high, has been pierced. A clear break of this level would confirm a resumption of a broader uptrend and open 4250.00, the Aug 26 2022 high. Initial firm support lies at 4007.50, the Jan 31 low. The latest pullback is considered corrective.

• Japan's NIKKEI closed higher by 184.19 pts or +0.67% at 27693.65 and the TOPIX ended 8.96 pts higher or +0.45% at 1979.22.
• Elsewhere, in China the SHANGHAI closed lower by 24.708 pts or -0.76% at 3238.698 and the HANG SENG ended 438.31 pts lower or -2.02% at 21222.16.
• Across Europe, Germany's DAX trades lower by 135.07 pts or -0.87% at 15341.48, FTSE 100 lower by 61.39 pts or -0.78% at 7840.3, CAC 40 down 88.89 pts or -1.23% at 7145.05 and Euro Stoxx 50 down 51.23 pts or -1.2% at 4206.75.
• Dow Jones mini down 182 pts or -0.54% at 33780, S&P 500 mini down 27.5 pts or -0.66% at 4120.5, NASDAQ mini down 106 pts or -0.84% at 12518.75.