Bearish Start to Week Confirms Resumption of Downtrend in E-Mini S&P

A bearish theme in Eurostoxx 50 futures remains in play and last week’s move lower reinforces current conditions. The contract has cleared support at 4082.00, the Oct 4 low and a bear trigger. This break confirms a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. The focus is on the 4000.00 handle. Initial firm resistance is at 4155.50, the 20-day EMA.S&P e-minis maintain a softer tone and the contract started the week on a bearish note. Support at 4235.50, the Oct 4 low and bear trigger, has been breached. The break of this support confirms a resumption of the downtrend and opens 4197.75, the May 24 low. Price remains below resistance at the 50-day EMA, at 4404.28. A clear breach of this average is required to strengthen bullish conditions. Initial resistance is at 4348.88, the 20-day EMA.

• Japan's NIKKEI closed higher by 62.8 pts or +0.2% at 31062.35 and the TOPIX ended 1.92 pts higher or +0.09% at 2240.73.
• Elsewhere, in China the SHANGHAI closed higher by 22.953 pts or +0.78% at 2962.244 and the HANG SENG ended 180.6 pts lower or -1.05% at 16991.53.
• Across Europe, Germany's DAX trades lower by 33.98 pts or -0.23% at 14766.89, FTSE 100 lower by 42.04 pts or -0.57% at 7333.89, CAC 40 down 10.23 pts or -0.15% at 6841.95 and Euro Stoxx 50 down 11.28 pts or -0.28% at 4031.31.
• Dow Jones mini up 41 pts or +0.12% at 33106, S&P 500 mini up 9.75 pts or +0.23% at 4251.5, NASDAQ mini up 46.5 pts or +0.32% at 14759.25.