Bearish Conditions Remain Present in E-Mini S&P Despite Recent Spike

A bearish threat in Eurostoxx 50 futures remains present following the reversal from 4513.00, the Jul 31 high. Last week’s gains appear to have been a correction. Price is once again trading below both the 20- and 50-day EMAs and attention is on support at 4276.00, the Aug 8 low. A break of this level would strengthen a bearish threat and expose 4220.00, the Jul 7 low. Initial firm resistance is 4424.00, Aug 2 high. Bearish conditions in the E-mini S&P contract remain intact and price is trading closer to its recent lows. Friday’s move lower resulted in a test of the 50-day EMA at 4462.48. A clear break of this average would expose 4450.90, the base of a bull channel drawn from the Mar 13 low. Clearance of this support would strengthen a bearish threat. Resistance to watch is 4560.75, Aug 4 high.

• Japan's NIKKEI closed lower by 413.74 pts or -1.27% at 32059.91 and the TOPIX ended 22.62 pts lower or -0.98% at 2280.89.
• Elsewhere, in China the SHANGHAI closed lower by 10.821 pts or -0.34% at 3178.427 and the HANG SENG ended 301.64 pts lower or -1.58% at 18773.55.
• Across Europe, Germany's DAX trades higher by 75.21 pts or +0.48% at 15908.17, FTSE 100 lower by 9.32 pts or -0.12% at 7515.53, CAC 40 up 14.95 pts or +0.2% at 7355 and Euro Stoxx 50 up 13.14 pts or +0.3% at 4334.84.
• Dow Jones mini up 58 pts or +0.16% at 35407, S&P 500 mini up 11 pts or +0.25% at 4491.75, NASDAQ mini up 64 pts or +0.42% at 15160.