Equity Futures Dip From Recent Highs

A bullish EUROSTOXX 50 futures outlook remains intact and the contract is trading closer to its recent highs. Last week’s gains maintains the recovery that started in early October and confirms an extension of the bullish price sequence of higher highs and higher lows. The recent break of resistance at 3810.00, Aug 17 high, also strengthened the case for bulls. The focus is on the 4000.00 psychological handle. Initial firm support is at 3840, Nov 17 low. The S&P E-Minis outlook remains bullish and last week’s gains have reinforced this theme. Furthermore, recent consolidation in the daily chart appears to be a flag formation - a bullish continuation pattern. The contract has recently breached 3928.00, Nov 1 high, establishing a positive price sequence of higher highs and higher lows. The focus is on 4100.00 next. Initial firm support lies at 3883.77, the 50-day EMA.

• Japan's NIKKEI closed lower by 120.2 pts or -0.43% at 28162.83 and the TOPIX ended 13.69 pts lower or -0.68% at 2004.31.
• Elsewhere, in China the SHANGHAI closed lower by 23.144 pts or -0.75% at 3078.549 and the HANG SENG ended 275.64 pts lower or -1.57% at 17297.94.
• Across Europe, Germany's DAX trades lower by 31 pts or -0.21% at 14510.63, FTSE 100 lower by 33.4 pts or -0.45% at 7453.19, CAC 40 down 20.41 pts or -0.3% at 6692.07 and Euro Stoxx 50 down 5.75 pts or -0.15% at 3956.66.
• Dow Jones mini down 85 pts or -0.25% at 34273, S&P 500 mini down 16.5 pts or -0.41% at 4016.25, NASDAQ mini down 61 pts or -0.52% at 11721.5.