Equity Futures Outlook Bullish Despite Monday Pullback

The EUROSTOXX 50 futures trend condition remains bullish with the contract trading closer to its recent highs. Last week’s gains maintain 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 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, the Nov 17 low. The S&P E-Minis outlook remains bullish Despite Monday’s move lower - the latest pullback is considered corrective. Recent consolidation in the daily chart appears to be a flag formation - if correct, this is 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. Firm support lies at 3887.16, the 50-day EMA.

• Japan's NIKKEI closed lower by 134.99 pts or -0.48% at 28027.84 and the TOPIX ended 11.34 pts lower or -0.57% at 1992.97.
• Elsewhere, in China the SHANGHAI closed higher by 71.199 pts or +2.31% at 3149.748 and the HANG SENG ended 889.8 pts higher or +5.14% at 18187.74.
• Across Europe, Germany's DAX trades higher by 9.2 pts or +0.06% at 14394.2, FTSE 100 higher by 39.1 pts or +0.52% at 7512.96, CAC 40 up 22.7 pts or +0.34% at 6687.9 and Euro Stoxx 50 up 12.5 pts or +0.32% at 3948.01.
• Dow Jones mini up 73 pts or +0.22% at 33943, S&P 500 mini up 15.5 pts or +0.39% at 3985.75, NASDAQ mini up 64.75 pts or +0.56% at 11681.