Eurostoxx 50 Futures Extend Recovery Toward Resistance at Mid-December High

Eurostoxx 50 futures have recovered this week from 4402.00, the Jan 17 low. 4402.00 represents a key short-term support. A break of this level would resume recent bearish pressure and open 4370.00, the Nov 28 low. On the upside, key resistance is at 4634.00, the Dec 14 high. Clearance of this level would confirm a resumption of the medium-term uptrend and open 4662.90, a Fibonacci projection. Initial support lies at 4508.80, the 20-day EMA. The uptrend in S&P E-Minis remains intact and this week’s move higher has reinforced current conditions. Resistance at 4841.50, the Dec 28 high has recently 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 4952.45 next, a Fibonacci projection. Key support lies at 4729.00, the 50-day EMA.

• Japan's NIKKEI closed lower by 485.4 pts or -1.34% at 35751.07 and the TOPIX ended 34.27 pts lower or -1.35% at 2497.65.
• Elsewhere, in China the SHANGHAI closed higher by 4.114 pts or +0.14% at 2910.223 and the HANG SENG ended 259.73 pts lower or -1.6% at 15952.23.
• Across Europe, Germany's DAX trades lower by 6.86 pts or -0.04% at 16899.36, FTSE 100 higher by 81.51 pts or +1.08% at 7610.53, CAC 40 up 130.46 pts or +1.75% at 7593.24 and Euro Stoxx 50 up 25.83 pts or +0.56% at 4607.59.
• Dow Jones mini down 97 pts or -0.25% at 38112, S&P 500 mini down 14.25 pts or -0.29% at 4908.75, NASDAQ mini down 125.75 pts or -0.71% at 17508.25.