Eurostoxx 50 Futures Return Back Toward Its Recent Cycle Highs

Eurostoxx 50 futures remain in an uptrend and the move lower Tuesday is considered corrective. The contract traded higher Monday delivering another fresh cycle high, confirming an extension of the current uptrend. This reinforces bullish conditions and the importance of the recent break of resistance at 4634.00, the Dec 14 high. Sights are on 4788.10, a Fibonacci projection. Initial firm support lies at 4663.90, the 20-day EMA. The trend condition in S&P E-Minis is unchanged and remains bullish. The pullback from Monday’s 5066.50 high is considered corrective and support to watch lies at 4947.87, 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. For bulls, the trigger for a resumption of gains is 5066.50, the Feb 12 high.

• Japan's NIKKEI closed higher by 454.62 pts or +1.21% at 38157.94 and the TOPIX ended 7.26 pts higher or +0.28% at 2591.85.
• Across Europe, Germany's DAX trades higher by 112.82 pts or +0.67% at 17057.5, FTSE 100 higher by 11.45 pts or +0.15% at 7579.97, CAC 40 up 68.09 pts or +0.89% at 7745.39 and Euro Stoxx 50 up 33.33 pts or +0.71% at 4742.43.
• Dow Jones mini up 72 pts or +0.19% at 38566, S&P 500 mini up 6 pts or +0.12% at 5024.25, NASDAQ mini up 3 pts or +0.02% at 17885.5.