E-Mini S&P Remains Close to Pre-CPI Highs

Eurostoxx 50 futures are consolidating. The primary trend direction remains up and the recent move lower is considered corrective. MA studies are in a bull-mode position, signalling a rising trend cycle. Key short-term support is 4446.70, the 50-day EMA. A break of this average would signal scope for a deeper retracement and open 4370.00, the Nov 28 low. For bulls, a reversal higher would refocus attention on 4634.00, the Dec 14 high and bull trigger. S&P E-Minis remain above last Friday’s low and the contract has traded higher this week. Key resistance and the bull trigger is at 4841.50, the Dec 28 high. Clearance of this level would resume the uptrend and open 4854.75, a Fibonacci projection. Support at the 20-day EMA of 4766.12 has recently been pierced. A clear break of this average would strengthen a short-term bearish threat and open the 50-day EMA, at 4673.91.

• Japan's NIKKEI closed higher by 527.25 pts or +1.5% at 35577.11 and the TOPIX ended 11.36 pts higher or +0.46% at 2494.23.
• Elsewhere, in China the SHANGHAI closed lower by 4.673 pts or -0.16% at 2881.977 and the HANG SENG ended 57.46 pts lower or -0.35% at 16244.58.
• Across Europe, Germany's DAX trades higher by 135.31 pts or +0.82% at 16681.8, FTSE 100 higher by 55.07 pts or +0.73% at 7631.34, CAC 40 up 77.58 pts or +1.05% at 7464.6 and Euro Stoxx 50 up 40.15 pts or +0.9% at 4482.15.
• Dow Jones mini up 65 pts or +0.17% at 37995, S&P 500 mini up 3.5 pts or +0.07% at 4819.25, NASDAQ mini down 5.75 pts or -0.03% at 16963.