Eurostoxx 50 Trend Conditions Remain Bullish, Highlighting Positive Sentiment

A bullish theme in Eurostoxx 50 futures remains intact and last week’s fresh cycle high reinforces this theme. Moving average studies remain in a bull-mode position - this continues to highlight positive market sentiment. Sights are on the psychological 5000.00 handle next. Further out, scope is seen for a climb towards a bull channel top at 5035.50. The channel is drawn from the Oct 27 low. Initial firm support lies at 4861.00, the 20-day EMA. The trend condition in S&P E-Minis is bullish and the latest pullback is considered corrective. Last week’s fresh highs reinforce current conditions. Note that price action continues to highlight the fact that corrections are shallow. This is a bullish signal highlighting positive market sentiment. Support to watch is 5137.36 the 20-day EMA. A clear break of this average would open 5022.53, the 50-day EMA. Sights are on 5300.00 next.

• Japan's NIKKEI closed lower by 22.98 pts or -0.06% at 38797.51 and the TOPIX ended 9.59 pts lower or -0.36% at 2657.24.
• Elsewhere, in China the SHANGHAI closed lower by 12.52 pts or -0.41% at 3055.935 and the HANG SENG ended 505.93 pts higher or +3.05% at 17093.5.
• Across Europe, Germany's DAX trades higher by 46.23 pts or +0.26% at 17792.35, FTSE 100 higher by 58.75 pts or +0.77% at 7727.97, CAC 40 up 6.32 pts or +0.08% at 8026.05 and Euro Stoxx 50 up 7.48 pts or +0.15% at 4937.9.
• Dow Jones mini down 10 pts or -0.03% at 38787, S&P 500 mini up 12.5 pts or +0.24% at 5135.75, NASDAQ mini up 84.5 pts or +0.47% at 18055.5.