Eurostoxx 50 Futures Remain Close to Recent Cycle Highs

Eurostoxx 50 futures remain in a bull cycle. The contract has resumed its uptrend and traded to a fresh cycle high on the last upleg. This 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. Sights are on 4800.00 and 4848.00, a Fibonacci projection. Initial firm support lies at 4701.60, the 20-day EMA. The trend condition in S&P E-Minis is unchanged and remains bullish, despite the pullback off last week’s highs. The weakness off 5066.50 is considered corrective and 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 lower by 101.45 pts or -0.26% at 38262.16 and the TOPIX ended 5 pts lower or -0.19% at 2627.3.
• Elsewhere, in China the SHANGHAI closed higher by 28.226 pts or +0.97% at 2950.956 and the HANG SENG ended 255.59 pts higher or +1.57% at 16503.1.
• Across Europe, Germany's DAX trades higher by 27.14 pts or +0.16% at 17096.16, FTSE 100 lower by 59.52 pts or -0.77% at 7659.65, CAC 40 up 11.87 pts or +0.15% at 7805.91 and Euro Stoxx 50 up 7.56 pts or +0.16% at 4767.37.
• Dow Jones mini down 72 pts or -0.19% at 38570, S&P 500 mini down 11.5 pts or -0.23% at 4980, NASDAQ mini down 76.5 pts or -0.43% at 17530.