Friday's Gains in E-Mini S&P Confirm Resumption of Uptrend

Eurostoxx 50 futures last week breached support at the Jan 5 low of 4444.0, trading to a low of 4402.00, the Jan 17 low. The contract has since recovered and 4402.00 represents a key short-term support. A break of this level would resume bearish pressure and open 4370.00, the Nov 28 low. Initial resistance to watch is 4536.00, the Jan 11 high. Clearance of this level would highlight a potential reversal and a resumption of the primary uptrend. The uptrend in S&P E-Minis remains intact and Friday’s gains confirmed a resumption of the trend. Resistance at 4841.50, the Dec 28 high has been cleared, marking an extension of the price sequence of higher highs and higher lows. Moving average studies remain in a bull-mode condition, reinforcing the current bullish condition. Sights are on 4900.00 next. Key support lies at 4699.31, the 50-day EMA.

• Japan's NIKKEI closed higher by 583.68 pts or +1.62% at 36546.95 and the TOPIX ended 34.89 pts higher or +1.39% at 2544.92.
• Elsewhere, in China the SHANGHAI closed lower by 75.939 pts or -2.68% at 2756.34 and the HANG SENG ended 347.51 pts lower or -2.27% at 14961.18.
• Across Europe, Germany's DAX trades higher by 82.68 pts or +0.5% at 16638.05, FTSE 100 higher by 13.27 pts or +0.18% at 7475.94, CAC 40 up 41.68 pts or +0.57% at 7413.32 and Euro Stoxx 50 up 26.45 pts or +0.59% at 4475.28.
• Dow Jones mini up 50 pts or +0.13% at 38095, S&P 500 mini up 13.5 pts or +0.28% at 4883, NASDAQ mini up 92 pts or +0.53% at 17530.75.