E-Mini S&P Trade Above $4000 Despite Bearish Technical Conditions

The Eurostoxx 50 futures outlook remains bearish following recent weakness and Wednesday’s strong sell-off reinforces the current bear cycle. Short-term gains are considered corrective. The break of the 4000.00 handle signals scope for weakness towards 3865.00, the Jan 4 low and further out towards the 3800.00 handle. Initial resistance is seen at 4143.60, the 20-day EMA. Key resistance has been defined at 4268.00, the Mar 6 high. The trend condition in S&P E-Minis remains bearish and recent short-term gains are considered corrective. Price recently cleared a key short-term support at 3960.75, Mar 2 low to confirm a resumption of the bear cycle that has been in place since Feb 2. The move lower signals scope for an extension towards 3822.00 next, the Dec 22 low. Initial firm resistance is seen at 4030.01, the 50-day EMA.

• Japan's NIKKEI closed higher by 323.18 pts or +1.2% at 27333.79 and the TOPIX ended 22.32 pts higher or +1.15% at 1959.42.
• Elsewhere, in China the SHANGHAI closed higher by 23.655 pts or +0.73% at 3250.546 and the HANG SENG ended 314.68 pts higher or +1.64% at 19518.59.
• Across Europe, Germany's DAX trades higher by 100.54 pts or +0.67% at 15072.79, FTSE 100 higher by 69.99 pts or +0.94% at 7482.01, CAC 40 up 35.46 pts or +0.5% at 7063.11 and Euro Stoxx 50 up 34.4 pts or +0.84% at 4152.13.
• Dow Jones mini up 12 pts or +0.04% at 32269, S&P 500 mini up 5 pts or +0.13% at 3965, NASDAQ mini up 8.25 pts or +0.07% at 12580.75.