EQUITIES: Break of Bear Trigger for E-Mini S&P Proves to Be Short-Lived

The medium-term trend condition in EuroStoxx 50 futures remains bullish and for now, the latest pullback appears corrective. Key support lies at the 50-day EMA at 5870.81. It has been pierced, a clear break of this average would undermine the bull theme and signal scope for a deeper retracement. The bull trigger is at 6086.00, the Jan 3 high. A move through this hurdle would resume the primary uptrend. A short-term bearish theme in S&P E-Minis resulted in a break last week of 6814.50, the Jan 21 low and a bear trigger. This proved short-lived, however, with prices rising swiftly back above to begin this week. Note this puts the contract back above the 20- and 50-day EMAs. Any continuation lower would open 6691.56, a Fibonacci retracement point. The contract has recovered today. Initial firm resistance now is 7025.46, the 1.0% 10-dma envelope. A break of this hurdle would be bullish.

• Japan's NIKKEI closed higher by 2110.26 pts or +3.89% at 56363.94 and the TOPIX ended 84.57 pts higher or +2.29% at 3783.57.
• Elsewhere, in China the SHANGHAI closed higher by 57.507 pts or +1.41% at 4123.09 and the HANG SENG ended 467.21 pts higher or +1.76% at 27027.16.
• Across Europe, Germany's DAX trades higher by 33.07 pts or +0.13% at 24755.31, FTSE 100 higher by 6.82 pts or +0.07% at 10376.25, CAC 40 down 9.02 pts or -0.11% at 8264.48 and Euro Stoxx 50 up 3.32 pts or +0.06% at 6001.49.
• Dow Jones mini down 23 pts or -0.05% at 50187, S&P 500 mini down 16.5 pts or -0.24% at 6937.5, NASDAQ mini down 112 pts or -0.45% at 25060.25.