S&P E-Minis Steadies Following Turbulent Post-CPI Price Action

EUROSTOXX 50 futures traded higher Thursday last week to breach 4265.00, the Feb 3 high. Despite the pullback from last week’s best levels, the fresh cycle high confirms a resumption of the uptrend and opens 4303.20, the 2.382 projection of the Sep 29 - Oct 4 rise from the Dec 20 low. Note that the trend is overbought. A pullback would represent a healthy correction. Key support lies at 4097.00, the Jan 19 low. Initial support is at 4167.50, the 20-day EMA. The S&P E-Minis trend condition is bullish and the latest pullback is considered corrective. The contract has pierced initial support at 4069.52, the 20-day EMA. Firmer support lies at the 50-day EMA, at 4006.63. A clear break of this average would signal scope for a deeper pullback and potentially highlight a reversal. Key resistance and the bull trigger intersect at 4208.50, the Feb 2 high. A breach would resume the uptrend.

• Japan's NIKKEI closed lower by 100.91 pts or -0.37% at 27501.86 and the TOPIX ended 5.35 pts lower or -0.27% at 1987.74.
• Elsewhere, in China the SHANGHAI closed lower by 12.79 pts or -0.39% at 3280.492 and the HANG SENG ended 301.59 pts lower or -1.43% at 20812.17.
• Across Europe, Germany's DAX trades higher by 68.3 pts or +0.44% at 15436.18, FTSE 100 lower by 10.75 pts or -0.14% at 7952.82, CAC 40 up 56.06 pts or +0.78% at 7263.07 and Euro Stoxx 50 up 25.39 pts or +0.6% at 4261.19.
• Dow Jones mini down 80 pts or -0.23% at 34049, S&P 500 mini down 14.5 pts or -0.35% at 4133, NASDAQ mini down 55.25 pts or -0.44% at 12586.25.