Eurostoxx 50 Futures Trade Close to Recent Highs; Uptrend Remains Intact

MNI US EARNINGS SCHEDULE - The quarterly earnings cycle hits a crescendo in the coming week, with 45% of the S&P500’s total market cap set to report. Reports are persistent across the week, but Tuesday is likely the most notable session for the index, as Alphabet, McDonald’s, Microsoft, PepsiCo and Visa are all due. Earnings season so far has been relatively solid, with the average firm tending to beat on EPS and revenues – although EPS metrics have held up well relative to sales.

The Eurostoxx 50 futures uptrend remains intact and the contract is trading closer to its recent highs. The recent extension higher has reinforced the bullish significance of the break of 4268.00, Mar 6 high and a former key resistance. The move confirmed a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Sights are on 4381.50, Jan 5 2022 high (cont). Initial firm support lies at 4266.00, the 20-day EMA. The trend outlook in S&P E-minis remains bullish and the latest move lower (from last Tuesday’s high) is considered corrective. Support to watch lies at 4125.73, the 20-day EMA where a break is required to suggest scope for a deeper pullback - this would expose 4083.76, the 50-day EMA. Attention is on the 4200.00 handle where a breach would resume the uptrend and open 4205.50, Feb 16 high ahead of 4244.00, the Feb 2 high and key resistance.

• Japan's NIKKEI closed higher by 29.15 pts or +0.1% at 28593.52 and the TOPIX ended 2.28 pts higher or +0.11% at 2037.34.
• Elsewhere, in China the SHANGHAI closed lower by 25.845 pts or -0.78% at 3275.413 and the HANG SENG ended 115.79 pts lower or -0.58% at 19959.94.
• Across Europe, Germany's DAX trades lower by 34.96 pts or -0.22% at 15845.96, FTSE 100 lower by 17.05 pts or -0.22% at 7897.65, CAC 40 down 21.33 pts or -0.28% at 7555.32 and Euro Stoxx 50 down 15.01 pts or -0.34% at 4393.2.
• Dow Jones mini down 101 pts or -0.3% at 33849, S&P 500 mini down 15.75 pts or -0.38% at 4141, NASDAQ mini down 56 pts or -0.43% at 13034.5.