Eurostoxx Futures Clear 4043.0 Bull Trigger, Opens 4100.0 Handle

EUROSTOXX 50 futures traded higher Monday, extending the recent climb. The contract has cleared resistance at 4043.00, the Dec 13 high and a bull trigger. The clear breach of this hurdle represents a key short-term bullish development and paves the way for gains towards the 4100.00 handle. Moving average studies are in a bull-mode condition, reinforcing the current positive trend condition. Initial support lies at 3912.60, the 20-day EMA. S&P E-Minis traded higher Monday but failed to hold on to the session high and closed at the day low. Key resistance at 3917.35, the 50-day EMA, has been breached. A continuation higher and a clear break of this EMA would suggest potential for a stronger recovery and highlight a possible reversal that would open 4000.00 next. On the downside, a break lower would confirm a resumption of the downtrend - the bear trigger is 3788.50, the Dec 22 low.

• Japan's NIKKEI closed higher by 201.71 pts or +0.78% at 26175.56 and the TOPIX ended 5.12 pts higher or +0.27% at 1880.88.
• Elsewhere, in China the SHANGHAI closed lower by 6.577 pts or -0.21% at 3169.507 and the HANG SENG ended 56.88 pts lower or -0.27% at 21331.46.
• Across Europe, Germany's DAX trades lower by 89.72 pts or -0.61% at 14702.2, FTSE 100 lower by 24.22 pts or -0.31% at 7700.24, CAC 40 down 44.68 pts or -0.65% at 6862.68 and Euro Stoxx 50 down 23.26 pts or -0.57% at 4045.36.
• Dow Jones mini down 104 pts or -0.31% at 33566, S&P 500 mini down 8 pts or -0.2% at 3905.75, NASDAQ mini down 15.5 pts or -0.14% at 11169.75.