EQUITIES: Eurostoxx 50 Futures Rally to Fresh Cycle Highs

The Eurostoxx 50 futures contract continues to appreciate. The move higher confirms once again, a resumption of the uptrend that started on Nov 21 ‘24. Moving average studies are in a bull mode set-up too, highlighting a dominant uptrend. Sights are on a major resistance at 5525.00, the March 2000 all-time high. Clearance of this level would highlight a key bullish break. Initial firm support to watch lies at 5243.32, the 20-day EMA. Price action on Feb 3 in the S&P E-Minis contract continues to highlight a possible short-term reversal threat. If correct, it suggests that the latest bounce is a correction. A resumption of weakness would open 5892.37, a Fibonacci retracement point. On the upside, a stronger rally would expose key resistance at 6178.75, the Dec 6 ‘24 high. Clearance of this hurdle would resume the primary uptrend.

• Japan's NIKKEI closed higher by 497.77 pts or +1.28% at 39461.47 and the TOPIX ended 32.26 pts higher or +1.18% at 2765.59.
• Elsewhere, in China the SHANGHAI closed lower by 13.902 pts or -0.42% at 3332.483 and the HANG SENG ended 43.55 pts lower or -0.2% at 21814.37.
• Across Europe, Germany's DAX trades higher by 225.23 pts or +1.02% at 22376.04, FTSE 100 lower by 72.75 pts or -0.83% at 8733.9, CAC 40 up 71.44 pts or +0.89% at 8113.18 and Euro Stoxx 50 up 47.49 pts or +0.88% at 5453.04.
• Dow Jones mini down 32 pts or -0.07% at 44430, S&P 500 mini down 3.25 pts or -0.05% at 6069.25, NASDAQ mini up 25.5 pts or +0.12% at 21829.75.