E-Mini S&P Starts Week on Bullish Note, Confirming Extension of Recovery

A short-term bull cycle in Eurostoxx 50 futures remains intact and the contract continues to appreciate. Price has recently cleared resistance at both the 20- and 50-day EMAs - a bullish development. Note that last Tuesday’s gains resulted in a breach of resistance at 4256.00, the Oct 12 high, reinforcing the bullish theme The focus is on 4388.00, the Aug 30 high. Initial firm support to watch is at 4228.90, the 20-day EMA. S&P e-minis traded higher Monday, starting the week on a bullish note and confirming an extension of the recovery that started Oct 27. Recent gains have resulted in a break of a trendline drawn from the Jul 27 high. This reinforces bullish conditions and signals scope for a climb towards 4597.50, the Sep 1 high. On the downside, initial firm support is seen at 4415.80, the 20-day EMA.

• Japan's NIKKEI closed lower by 33.89 pts or -0.1% at 33354.14 and the TOPIX ended 4.81 pts lower or -0.2% at 2367.79.
• Elsewhere, in China the SHANGHAI closed lower by 0.386 pts or -0.01% at 3067.933 and the HANG SENG ended 44.18 pts lower or -0.25% at 17733.89.
• Across Europe, Germany's DAX trades higher by 39.57 pts or +0.25% at 15943.36, FTSE 100 lower by 31.67 pts or -0.42% at 7465.68, CAC 40 down 9.25 pts or -0.13% at 7237.58 and Euro Stoxx 50 up 0.49 pts or +0.01% at 4343.19.
• Dow Jones mini down 51 pts or -0.14% at 35172, S&P 500 mini down 5.75 pts or -0.13% at 4556.5, NASDAQ mini down 11 pts or -0.07% at 16075.