Eurostoxx 50 Futures Continue to Trade Above 50-Day EMA

A short-term bull cycle in Eurostoxx 50 futures remains intact and the contract is trading closer to its recent highs. Price has recently traded through resistance at both the 20- and 50-day EMAs. The broader trend condition is bearish, however, a clear break of the 50-day EMA, at 4183.70, would signal scope for a stronger bull cycle and open 4256.00, the Oct 12 high. On the downside, key support and the bear trigger lies at 4001.0, the Oct 27 low. S&P e-minis traded higher last week and the contract maintains a firm short-term tone. The latest recovery still appears to be a correction, however, price has cleared the 20- and 50-day EMAs. The break of the 50-day average - a key short-term pivot level - has strengthened bullish conditions. Sights are on 4430.50, the Oct 12 high and 4435.50, trendline resistance drawn from the Jul 27 high. Key support and the bear trigger is at 4122.25, the Oct 27 low.

• Japan's NIKKEI closed higher by 479.98 pts or +1.49% at 32646.46 and the TOPIX ended 29.17 pts higher or +1.27% at 2335.12.
• Elsewhere, in China the SHANGHAI closed higher by 0.906 pts or +0.03% at 3053.279 and the HANG SENG ended 57.17 pts lower or -0.33% at 17511.29.
• Across Europe, Germany's DAX trades higher by 22.69 pts or +0.15% at 15250.64, FTSE 100 lower by 8.05 pts or -0.11% at 7393.11, CAC 40 up 26.22 pts or +0.37% at 7059.19 and Euro Stoxx 50 up 19.07 pts or +0.46% at 4197.1.
• Dow Jones mini up 19 pts or +0.06% at 34191, S&P 500 mini down 0.75 pts or -0.02% at 4399, NASDAQ mini down 18.5 pts or -0.12% at 15368.75.