Eurostoxx 50 Futures Clear 4800 Handle

The bull cycle in Eurostoxx 50 futures extended sharply early Thursday, with psychological resistance at 4800 cleared in style, and first modest resistance at 4548.00 cracking in the process. The intraday high of 4864.00 looks extended having pierced the 2.0% Upper Bollinger Band, however the outlook is resolutely bullish the longer these levels hold. The upleg reinforces current conditions and the importance of the recent break of resistance at 4634.00, the Dec 14 high. Moving average studies are in a bull-mode position, highlighting positive market sentiment. The trend condition in S&P E-Minis is resolutely bullish, with the upside trigger at 5066.50 already under pressure. This erases the pullback off last week’s highs, confirming S/T weakness as corrective. Support to watch lies at 4967.25, the 20-day EMA. A clear break of this average would suggest potential for a deeper retracement, possibly towards the 4866.00 key support, the Jan 31 low. The trigger for a resumption of gains is 5066.50, the Feb 12 high.

• Japan's NIKKEI closed higher by 836.52 pts or +2.19% at 39098.68 and the TOPIX ended 33.41 pts higher or +1.27% at 2660.71.
• Elsewhere, in China the SHANGHAI closed higher by 37.402 pts or +1.27% at 2988.358 and the HANG SENG ended 239.85 pts higher or +1.45% at 16742.95.
• Across Europe, Germany's DAX trades higher by 176.5 pts or +1.03% at 17294.68, FTSE 100 lower by 1.41 pts or -0.02% at 7661.04, CAC 40 up 53.14 pts or +0.68% at 7864.91 and Euro Stoxx 50 up 51.19 pts or +1.07% at 4826.25.
• Dow Jones mini up 92 pts or +0.24% at 38762, S&P 500 mini up 56 pts or +1.12% at 5051.75, NASDAQ mini up 344 pts or +1.96% at 17877.5.