Equity Futures Begin Week on Soft Footing

EUROSTOXX 50 futures remain above support at 4097.00, Jan 19 low and the contract is trading just ahead of key short-term resistance at 4206.00, Jan 18 high. A break of this level would confirm a resumption of the uptrend and pave the way for a climb towards 4215.00, a Fibonacci projection. Note that the trend remains overbought. A pullback, if seen, would represent a healthy bull trend correction. Support to watch is 4094.60, the 20-day EMA. S&P E-Minis traded higher last week to confirm a resumption of the current uptrend. The breach of resistance has resulted in a print above the 4100.00 handle and an extension higher would open 4180.00, the Dec 13 high and a bull trigger. Initial firm support has been defined at 3954.84, the 50-day EMA. A move below the average would be seen as a bearish development and signal a short-term reversal.

• Japan's NIKKEI closed higher by 50.84 pts or +0.19% at 27433.4 and the TOPIX ended 0.26 pts lower or -0.01% at 1982.4.
• Elsewhere, in China the SHANGHAI closed higher by 4.504 pts or +0.14% at 3269.318 and the HANG SENG ended 619.17 pts lower or -2.73% at 22069.73.
• Across Europe, Germany's DAX trades lower by 58.12 pts or -0.38% at 15090.98, FTSE 100 lower by 16.59 pts or -0.21% at 7749.17, CAC 40 down 29.65 pts or -0.42% at 7067.56 and Euro Stoxx 50 down 28.12 pts or -0.67% at 4150.03.
• Dow Jones mini down 172 pts or -0.51% at 33864, S&P 500 mini down 29.25 pts or -0.72% at 4053, NASDAQ mini down 121.25 pts or -0.99% at 12093.5.