Eurostoxx 50 Futures Extend Bounce From Last Week's Lows

Eurostoxx 50 futures have recovered from last week’s low of 4402.00 (the Jan 17 low) and the contract is holding on to its most recent gains. 4402.00 represents a key short-term support. A break of it would resume recent bearish pressure and open 4370.00, the Nov 28 low. On the upside, initial resistance to watch is 4536.00, the Jan 11 high. Clearance of this level would highlight a potential S/T reversal and a resumption of the primary uptrend. The uptrend in S&P E-Minis remains intact and this week’s move higher reinforces current conditions. Resistance at 4841.50, the Dec 28 high has been cleared, confirming an extension of the price sequence of higher highs and higher lows. Moving average studies remain in a bull-mode condition, highlighting positive market sentiment. Sights are on 4915.11 next, a Fibonacci projection. Key support lies at 4713.85, the 50-day EMA.

• Japan's NIKKEI closed lower by 291.09 pts or -0.8% at 36226.48 and the TOPIX ended 12.85 pts lower or -0.51% at 2529.22.
• Elsewhere, in China the SHANGHAI closed higher by 49.796 pts or +1.8% at 2820.772 and the HANG SENG ended 545.89 pts higher or +3.56% at 15899.87.
• Across Europe, Germany's DAX trades higher by 158.51 pts or +0.95% at 16784.51, FTSE 100 higher by 21.7 pts or +0.29% at 7507.4, CAC 40 up 37.07 pts or +0.5% at 7425.11 and Euro Stoxx 50 up 59.5 pts or +1.33% at 4525.41.
• Dow Jones mini up 53 pts or +0.14% at 38142, S&P 500 mini up 20.75 pts or +0.42% at 4915.75, NASDAQ mini up 131.25 pts or +0.75% at 17662.75.