Eurostoxx Pullback Considered Corrective After Printing Fresh Cycle High Wed

EUROSTOXX 50 futures bullish conditions remain intact and the recent shallow pullback is considered corrective. Futures have recently cleared resistance at 4043.00, the Dec 13 high and a bull trigger. The break marks a key short-term positive development and paves the way for gains towards 4215.00 next, a Fibonacci projection. Moving average studies are in a bull-mode condition, reinforcing the bull theme. Initial firm support is 4015.70.S&P E-Minis traded lower Wednesday and a key short-term resistance has been defined at 4035.25, the Jan 17 high. Attention is on support at 3931.73, the 50-day EMA. A break of this average would highlight a potential bearish reversal and expose support at 3891.50, the Jan 10 low. On the upside, the contract needs to clear 4035.25 to cancel any developing bearish threat and instead confirm a resumption of recent bullish activity.

• Japan's NIKKEI closed lower by 385.89 pts or -1.44% at 26405.23 and the TOPIX ended 19.31 pts lower or -1% at 1915.62.
• Elsewhere, in China the SHANGHAI closed higher by 15.873 pts or +0.49% at 3240.279 and the HANG SENG ended 27.02 pts lower or -0.12% at 21650.98.
• Across Europe, Germany's DAX trades lower by 103.19 pts or -0.68% at 15079.15, FTSE 100 lower by 42.65 pts or -0.54% at 7787.78, CAC 40 down 44.67 pts or -0.63% at 7038.72 and Euro Stoxx 50 down 27.88 pts or -0.67% at 4146.46.
• Dow Jones mini down 143 pts or -0.43% at 33248, S&P 500 mini down 14.75 pts or -0.37% at 3931.25, NASDAQ mini down 33.5 pts or -0.29% at 11444.