Eurostoxx Futures Test 4323.0 Bull Trigger, Clear Break Needed to Resume Uptrend

Eurostoxx 50 futures have recovered from recent lows and importantly, this has left a key support intact - the base of a bull channel drawn from the Oct 13 low. The line intersects 4221.20. While channel support holds, the broader uptrend remains intact. Monday’s gains resulted in a test of 4323.00, the Feb 16 high and bull trigger. A clear break would resume the uptrend. On the downside, a breach of the channel base alters the picture. S&P E-Minis trend conditions are bearish, however, the strong bounce late last week has eased bearish pressure. Note that the contract has traded above both the 20- and 50-day EMAs. An ability to hold on to its latest gains would signal scope for a recovery towards 4100.20, a Fibonacci retracement. On the downside, key support has been defined at 3925.00, the Mar 2 low. A break of this level would reinstate the recent bearish theme.

• Japan's NIKKEI closed higher by 71.38 pts or +0.25% at 28309.16 and the TOPIX ended 8.49 pts higher or +0.42% at 2044.98.
• Elsewhere, in China the SHANGHAI closed lower by 36.927 pts or -1.11% at 3285.099 and the HANG SENG ended 68.71 pts lower or -0.33% at 20534.48.
• Across Europe, Germany's DAX trades higher by 43.4 pts or +0.28% at 15676.75, FTSE 100 higher by 13.54 pts or +0.17% at 7937.39, CAC 40 up 13.87 pts or +0.19% at 7377.96 and Euro Stoxx 50 up 1.88 pts or +0.04% at 4313.73.
• Dow Jones mini up 48 pts or +0.14% at 33475, S&P 500 mini up 8.75 pts or +0.22% at 4059, NASDAQ mini up 38.75 pts or +0.31% at 12353.75.