Bearish Conditions in E-Mini S&P Remain Intact

Gains in Eurostoxx 50 futures stalled last week at 4513.00 on Jul 31, and the contract reversed sharply lower over the week. Price has cleared both the 20- and 50-day EMAs, highlighting a stronger bearish threat. Note too, that key support at 4331.00, the Jul 26 low, has been breached. This strengthens a bearish theme and opens 4220.00, the Jul 7 low and a reversal trigger. Initial firm resistance is at 4424.00, the Aug 2 high. Bearish conditions in the E-mini S&P contract remain intact. Last week’s move lower reinforces a bearish theme and resulted in a break of support around the 20-day EMA. The recent failure at the top of the bull channel also highlights a bearish development and the risk of an extension lower near-term. Further downside would open 4453.93, the 50-day EMA. First key resistance is at 4634.50, the Jul 27 high.

• Japan's NIKKEI closed higher by 61.81 pts or +0.19% at 32254.56 and the TOPIX ended 9.3 pts higher or +0.41% at 2283.93.
• Elsewhere, in China the SHANGHAI closed lower by 19.253 pts or -0.59% at 3268.831 and the HANG SENG ended 1.54 pts lower or -0.01% at 19537.92.
• Across Europe, Germany's DAX trades lower by 61.48 pts or -0.39% at 15891.81, FTSE 100 lower by 37.16 pts or -0.49% at 7527.62, CAC 40 down 26.3 pts or -0.36% at 7288.77 and Euro Stoxx 50 down 17.04 pts or -0.39% at 4315.87.
• Dow Jones mini up 54 pts or +0.15% at 35206, S&P 500 mini up 11.5 pts or +0.26% at 4509, NASDAQ mini up 55.75 pts or +0.36% at 15408.75.