Equity Futures Remain Bullish After Last Week's Rally

A bullish EUROSTOXX 50 futures outlook remains intact following last week’s strong gains. The contract has cleared resistance at 3810.00, the Aug 17 high and an important bull trigger. Moving average studies are in a bull mode set-up and this highlights the current market sentiment. The focus is on a climb towards 3944.00, the Mar 29 high on the continuation chart. The initial firm support lies at Thursday's 3697.00 low. S&P E-Minis rallied sharply higher last Thursday and in the process cleared a key resistance at 3928.00, the Nov 1 high. The break strengthens a short-term bullish condition and price has established a sequence of higher highs and higher lows on the daily scale. This signals scope for gains towards 4023.44 next, a Fibonacci retracement. On the downside, key short-term support has been defined at 3704.25, the Nov 3 low.

• Japan's NIKKEI closed lower by 300.1 pts or -1.06% at 27963.47 and the TOPIX ended 20.86 pts lower or -1.05% at 1956.9.
• Elsewhere, in China the SHANGHAI closed lower by 3.891 pts or -0.13% at 3083.401 and the HANG SENG ended 294.05 pts higher or +1.7% at 17619.71.
• Across Europe, Germany's DAX trades higher by 104.28 pts or +0.73% at 14329.01, FTSE 100 higher by 61.91 pts or +0.85% at 7379.71, CAC 40 up 34.51 pts or +0.52% at 6629.13 and Euro Stoxx 50 up 19.65 pts or +0.51% at 3888.15.
• Dow Jones mini down 47 pts or -0.14% at 33718, S&P 500 mini down 8.5 pts or -0.21% at 3992.25, NASDAQ mini down 52.5 pts or -0.44% at 11796.25.