EQUITIES: Move Higher in Eurostoxx Futures This Week Undermines Bearish Theme

The move higher in Eurostoxx 50 futures this week, undermines a recent bearish theme. The contract has traded above the 20- and 50-day EMAs and this signals scope for a stronger recovery near-term. A continuation would open 5691.30 and 5742.40, Fibonacci retracement points. For bears, a reversal lower would instead expose the key short-term support and bear trigger at 5475.00, the Nov 21 low. S&P E-Minis are trading higher as the contract extends the recovery from the Nov 21 low. The climb has resulted in a breach of the 20- and 50- day EMAs. This highlights a bullish development and the likely end of the corrective cycle between Oct 30 and Nov 21. A continuation higher would signal scope for a climb towards the key resistance and bull trigger at 6953.75, the Oct 30 high. Key support has been defined at 6525.00, the Nov 21 low.

• Japan's NIKKEI closed higher by 608.03 pts or +1.23% at 50167.1 and the TOPIX ended 13.07 pts higher or +0.39% at 3368.57.
• Elsewhere, in China the SHANGHAI closed higher by 11.076 pts or +0.29% at 3875.26 and the HANG SENG ended 17.85 pts higher or +0.07% at 25945.93.
• Across Europe, Germany's DAX trades higher by 38.3 pts or +0.16% at 23765, FTSE 100 lower by 28.97 pts or -0.3% at 9662.57, CAC 40 down 8.61 pts or -0.11% at 8087.82 and Euro Stoxx 50 down 9.09 pts or -0.16% at 5646.49.
• Dow Jones mini down 21 pts or -0.04% at 47469, S&P 500 mini down 1 pts or -0.01% at 6827, NASDAQ mini up 4.5 pts or +0.02% at 25307.25.