Eurostoxx 50 Futures Remain Close to its Recent Cycle Highs

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 - a bullish development and activity remains above these averages. Note that resistance at 4256.00, the Oct 12 high, has also been cleared, reinforcing the bullish theme. The focus is on 4388.00, the Aug 30 high. Initial firm support to watch is at 4239.80, the 20-day EMA. S&P e-minis traded higher Monday, starting the week on a bullish note and confirming an extension of the recovery that started Oct 27. The trend direction remains up. Recent gains have resulted in the break of a trendline drawn from the Jul 27 high. This reinforces bullish conditions and signals scope for a climb towards 4597.50, the Sep 1 high. On the downside, initial firm support is seen at 4428.70, the 20-day EMA.

• Japan's NIKKEI closed higher by 97.69 pts or +0.29% at 33451.83 and the TOPIX ended 10.4 pts higher or +0.44% at 2378.19.
• Elsewhere, in China the SHANGHAI closed lower by 24.322 pts or -0.79% at 3043.611 and the HANG SENG ended 0.71 pts higher or +0% at 17734.6.
• Across Europe, Germany's DAX trades higher by 49.72 pts or +0.31% at 15950.36, FTSE 100 higher by 3.56 pts or +0.05% at 7485.93, CAC 40 up 25.07 pts or +0.35% at 7254.28 and Euro Stoxx 50 up 10.93 pts or +0.25% at 4342.84.
• Dow Jones mini up 22 pts or +0.06% at 35169, S&P 500 mini down 0.25 pts or -0.01% at 4551.25, NASDAQ mini down 15 pts or -0.09% at 15975.5.