Fresh Cycle Highs in Eurostoxx 50 Futures Reinforce Bullish Conditions

A bullish theme in Eurostoxx 50 futures remains intact and the contract traded to a fresh cycle high yesterday. Moving average studies are in a bull-mode position and this continues to highlight positive market sentiment. Price has pierced the psychological 5000.00 handle. Scope is seen for a climb towards a bull channel top at 5055.50. The channel is drawn from the Oct 27 low. Initial firm support lies at 4895.80, the 20-day EMA. The trend condition in S&P E-Minis is unchanged and remains bullish. Recent fresh cycle highs reinforce current conditions. Price action continues to highlight the fact that corrections remain shallow. This is an important bullish signal, reflecting positive market sentiment. Support to watch is 5161.33 the 20-day EMA. A clear break of this average would open 5046.03, the 50-day EMA. Sights are on 5300.00 next.

• Japan's NIKKEI closed lower by 99.74 pts or -0.26% at 38707.64 and the TOPIX ended 9.21 pts higher or +0.35% at 2670.8.
• Elsewhere, in China the SHANGHAI closed higher by 16.402 pts or +0.54% at 3054.636 and the HANG SENG ended 240.77 pts lower or -1.42% at 16720.89.
• Across Europe, Germany's DAX trades higher by 3.35 pts or +0.02% at 17945.56, FTSE 100 lower by 1.34 pts or -0.02% at 7741.84, CAC 40 up 10.61 pts or +0.13% at 8170.43 and Euro Stoxx 50 up 5.11 pts or +0.1% at 4997.4.
• Dow Jones mini up 3 pts or +0.01% at 38916, S&P 500 mini down 0.25 pts or 0% at 5153.5, NASDAQ mini down 26.25 pts or -0.15% at 17998.25.