Post-CPI Pullback in Eurostoxx 50 Futures Considered Technically Corrective

Eurostoxx 50 futures remain in an uptrend and the move lower Tuesday is considered corrective. The contract traded higher Monday delivering another fresh cycle high, confirming an extension of the current uptrend. The move higher reinforces bullish conditions and the importance of the recent break of resistance at 4634.00, the Dec 14 high. This signals scope for 4788.10, a Fibonacci projection. Initial firm support lies at 4647.70, the 20-day EMA. The trend condition in S&P E-Minis is unchanged and remains bullish. The pullback from Monday’s 5066.50 high is - for now - considered corrective. Support to watch lies at 4940.49, the 20-day EMA. A clear break of this average would suggest potential for a deeper retracement, possibly towards the 4866.00 key support, the Jan 31 low. For bulls, the trigger for a resumption of gains is 5066.50, the Feb 12 high.

• Japan's NIKKEI closed lower by 260.65 pts or -0.69% at 37703.32 and the TOPIX ended 27.44 pts lower or -1.05% at 2584.59.
• Across Europe, Germany's DAX trades higher by 6.8 pts or +0.04% at 16891.02, FTSE 100 higher by 42.8 pts or +0.57% at 7548.37, CAC 40 up 24.68 pts or +0.32% at 7649.07 and Euro Stoxx 50 up 7.85 pts or +0.17% at 4699.35.
• Dow Jones mini up 73 pts or +0.19% at 38394, S&P 500 mini up 17.75 pts or +0.36% at 4986.75, NASDAQ mini up 98.5 pts or +0.56% at 17764.