Eurostoxx 50 Futures Approach Resistance at $4256; Short-Term Bull Cycle Remains Intact

A short-term bull cycle in Eurostoxx 50 futures remains intact and the contract is holding on to its recent gains. Price has recently cleared resistance at both the 20- and 50-day EMAs. The clear break of the 50-day EMA, at 4188.90, signals scope for a stronger bull cycle and opens 4256.00, the Oct 12 high. On the downside, key support and the bear trigger lies at 4001.00, the Oct 27 low. Initial support to watch is at 4162.20, the 20-day EMA. S&P e-minis maintain a firmer tone and the contract traded to a fresh trend high on Friday and is holding on to its recent gains. This reinforces bullish conditions. The move higher has also resulted in a test of trendline resistance at 4425.38. The trendline is drawn from the Jul 27 high and a clear break of it would strengthen current bullish conditions, opening 4470.18, a Fibonacci retracement. Initial firm support is 4341.05, the 20-day EMA.

• Japan's NIKKEI closed higher by 110.82 pts or +0.34% at 32695.93 and the TOPIX ended 8.67 pts higher or +0.37% at 2345.29.
• Elsewhere, in China the SHANGHAI closed higher by 9.537 pts or +0.31% at 3056.07 and the HANG SENG ended 29.35 pts lower or -0.17% at 17396.86.
• Across Europe, Germany's DAX trades higher by 56.78 pts or +0.37% at 15402.68, FTSE 100 lower by 6.59 pts or -0.09% at 7419.61, CAC 40 up 8.6 pts or +0.12% at 7095.66 and Euro Stoxx 50 up 8.54 pts or +0.2% at 4240.73.
• Dow Jones mini up 33 pts or +0.1% at 34419, S&P 500 mini up 7.75 pts or +0.18% at 4433, NASDAQ mini up 43.25 pts or +0.28% at 15589.75.