Eurostoxx Futures Trade Lower Thursday, Signalling Potential Corrective Pullback

EUROSTOXX 50 futures traded lower Thursday. The broader trend outlook remains bullish, however, the cycle is overbought and this warns of the potential for a short-term pullback. A move lower would allow the overbought reading to unwind. A continuation lower would open 4038.20, the 20-day EMA and a key near-term support. On the upside, key short-term resistance and the bull trigger has been defined at 4206.00, the Jan 18 high. S&P E-Minis traded lower again Thursday. A key short-term resistance has been defined at 4035.25, the Jan 17 high and price has traded through support at 3930.77, the 50-day EMA. A clear break would highlight a potential bearish reversal and expose 3891.50, the Jan 10 low. On the upside, the contract needs to clear 4035.25 to cancel any developing bearish threat and confirm a resumption of recent bullish activity.

• Japan's NIKKEI closed higher by 148.3 pts or +0.56% at 26553.53 and the TOPIX ended 11.25 pts higher or +0.59% at 1926.87.
• Elsewhere, in China the SHANGHAI closed higher by 24.535 pts or +0.76% at 3264.814 and the HANG SENG ended 393.67 pts higher or +1.82% at 22044.65.
• Across Europe, Germany's DAX trades higher by 72.58 pts or +0.49% at 14974.09, FTSE 100 higher by 36.8 pts or +0.48% at 7777.08, CAC 40 up 38.13 pts or +0.55% at 6977.99 and Euro Stoxx 50 up 21.28 pts or +0.52% at 4109.41.
• Dow Jones mini up 60 pts or +0.18% at 33197, S&P 500 mini up 9.25 pts or +0.24% at 3924.25, NASDAQ mini up 42.75 pts or +0.38% at 11398.25.