Equity Futures Fail to Hold Onto CPI-Fuelled Gains

EUROSTOXX 50 futures traded in a volatile manner Tuesday. The break higher resulted in a print above resistance at 4021.00, Dec 1 high. This reinforces bullish conditions and a clear breach would confirm a resumption of the uptrend and open 4049.50, the Feb 23 high (cont). Key short-term support has been defined at 3903.00, the Dec 8 low, where a break would instead highlight a possible short-term reversal. A strong rally in the S&P E-Minis Tuesday saw price trade above 4142.50, Dec 1 high. The contract failed to hold onto its highs and pulled back sharply. Despite the move lower, the trend outlook is bullish and yesterday’s high print maintains the bullish sequence of higher highs and higher lows. A resumption of gains would open 4194.25, the Sep 13 high. Key support has been defined at 3945.75, Dec 7 low. This is just below the 50-day EMA, at 3957.96.

• Japan's NIKKEI closed higher by 201.36 pts or +0.72% at 28156.21 and the TOPIX ended 11.74 pts higher or +0.6% at 1977.42.
• Elsewhere, in China the SHANGHAI closed higher by 0.2 pts or +0.01% at 3176.525 and the HANG SENG ended 77.25 pts higher or +0.39% at 19673.45.
• Across Europe, Germany's DAX trades lower by 55.52 pts or -0.38% at 14441.26, FTSE 100 lower by 31.38 pts or -0.42% at 7471.52, CAC 40 down 29.71 pts or -0.44% at 6713.64 and Euro Stoxx 50 down 18.12 pts or -0.45% at 3967.61.
• Dow Jones mini up 11 pts or +0.03% at 34144, S&P 500 mini up 1.5 pts or +0.04% at 4023.75, NASDAQ mini up 7.25 pts or +0.06% at 11847.