Bear Cycle in E-Mini S&P Remains in Play

Eurostoxx 50 futures maintain a softer tone following last week’s move lower and this week’s extension reinforces current conditions. Key support at 4210.00, the Sep 8 low, has been breached. The clear break confirms a resumption of the downtrend that started late July and paves the way for a move towards 4109.90, a Fibonacci projection. Key short-term resistance has been defined at 4359.00, the Sep 15 high. A break would be bullish. A bear cycle in S&P E-minis remains in play and the contract traded lower Tuesday, extending the current downleg. Last Thursday’s sell-off resulted in a break of support at 4397.75, the Aug 18 low. This breach reinforced bearish conditions and signals scope for a continuation lower. Sights are on 4300.62, a Fibonacci retracement point. Initial firm resistance is 4485.10, the 50-day EMA. Short-term gains would be considered corrective.

• Japan's NIKKEI closed higher by 56.85 pts or +0.18% at 32371.9 and the TOPIX ended 7.59 pts higher or +0.32% at 2379.53.
• Elsewhere, in China the SHANGHAI closed higher by 5.043 pts or +0.16% at 3107.316 and the HANG SENG ended 144.97 pts higher or +0.83% at 17611.87.
• Across Europe, Germany's DAX trades higher by 29.86 pts or +0.2% at 15285.68, FTSE 100 higher by 7.91 pts or +0.1% at 7633.57, CAC 40 up 26.49 pts or +0.37% at 7100.51 and Euro Stoxx 50 up 20.9 pts or +0.51% at 4150.08.
• Dow Jones mini up 108 pts or +0.32% at 33979, S&P 500 mini up 18.25 pts or +0.42% at 4332.25, NASDAQ mini up 65.25 pts or +0.44% at 14778.25.