Eurostoxx Futures Trade Higher Again, Though Gains Seen as Corrective For Now

EUROSTOXX 50 futures are again trading higher, with this week’s move resulting in a break of initial resistance at 3895.00, the Dec 22 high. Gains are considered corrective - for now - however, a continuation higher would expose key resistance and the bull trigger at 4043.00, the Dec 13 high. A reversal lower and a break of support at 3753.00, Dec 20 low, would resume the recent bear leg and open 3646.50, the 50% retracement of the Sep - Dec bull cycle. S&P E-Minis trend signals remain bearish and recent gains are considered corrective. Key resistance to watch is at 3926.25, the 50-day EMA. A clear break of this hurdle is required to suggest potential for a stronger recovery and possibly a reversal. On the downside, a break lower would confirm a resumption of the downtrend with the focus on 3778.45, a Fibonacci retracement.

• Japan's NIKKEI closed lower by 377.64 pts or -1.45% at 25716.86 and the TOPIX ended 23.56 pts lower or -1.25% at 1868.15.
• Elsewhere, in China the SHANGHAI closed higher by 7.004 pts or +0.22% at 3123.516 and the HANG SENG ended 647.82 pts higher or +3.22% at 20793.11.
• Across Europe, Germany's DAX trades higher by 194.94 pts or +1.37% at 14339.91, FTSE 100 higher by 29.89 pts or +0.4% at 7568.58, CAC 40 up 93.2 pts or +1.41% at 6705.19 and Euro Stoxx 50 up 55.36 pts or +1.43% at 3928.48.
• Dow Jones mini up 101 pts or +0.3% at 33381, S&P 500 mini up 16.5 pts or +0.43% at 3863.5, NASDAQ mini up 81.75 pts or +0.75% at 11036.5.