Bear Cycle in E-Mini S&P Remains in Play Despite Recent Recovery

Eurostoxx 50 futures trend conditions remain bearish, with Friday’s rally and the follow through this morning deemed corrective in nature. The contract has traded below 4128.00, the Sep 27 low. This confirms a resumption of the downtrend that started late July and signals scope for a move towards 4055.40, a Fibonacci retracement point. Initial firm resistance is at 4207.30, the 20-day EMA. A break of this average would signal a possible short-term base. A bear cycle in S&P E-minis remains in play, despite Friday’s sharp corrective rally and the follow through this morning. The contract traded lower last Wednesday, confirming a resumption of the bear leg once again. This maintains the price sequence of lower lows and lower highs and signals scope for weakness towards 4194.75, the May 24 low. Pivot resistance is 4441.61, the 50-day EMA. Ahead of the 50-day average is resistance at 4381.68, the 20-day EMA.

• Japan's NIKKEI closed higher by 751.86 pts or +2.43% at 31746.53 and the TOPIX ended 48.11 pts higher or +2.12% at 2312.19.
• Elsewhere, in China the SHANGHAI closed lower by 21.686 pts or -0.7% at 3075.236 and the HANG SENG ended 147.33 pts higher or +0.84% at 17664.73.
• Across Europe, Germany's DAX trades higher by 237.53 pts or +1.57% at 15365.28, FTSE 100 higher by 110.14 pts or +1.47% at 7602.59, CAC 40 up 94.57 pts or +1.35% at 7115.11 and Euro Stoxx 50 up 63.59 pts or +1.55% at 4175.72.
• Dow Jones mini up 84 pts or +0.25% at 33879, S&P 500 mini up 11 pts or +0.25% at 4378.75, NASDAQ mini up 48.25 pts or +0.32% at 15232.75.