Bearish Theme in E-Mini S&P Remains Intact

A bearish threat in Eurostoxx 50 futures remains present and this week’s sell-off reinforces current conditions. The contract has breached support at 4276.00, the Aug 8 and 15 low. The break of this level strengthens a bearish threat and exposes 4220.00, the Jul 7 low. Key short-term resistance is unchanged at 4420.00, the Aug 10 high. Initial resistance is 4357.9, the 50-day EMA. A bearish theme in the E-mini S&P contract remains intact and this week’s move lower has reinforced current conditions. The contract has cleared the 50-day EMA and breached channel support drawn from the Mar 13 low - the base is at 4467.06 today. The clear breakout signals scope for a continuation lower and opens the 4400.00 next. Initial firm resistance to watch is at the 20-day EMA - at 4506.36

• Japan's NIKKEI closed lower by 140.82 pts or -0.44% at 31626 and the TOPIX ended 7.78 pts lower or -0.34% at 2253.06.
• Elsewhere, in China the SHANGHAI closed higher by 13.611 pts or +0.43% at 3163.739 and the HANG SENG ended 2.67 pts lower or -0.01% at 18326.63.
• Across Europe, Germany's DAX trades lower by 20.32 pts or -0.13% at 15768.14, FTSE 100 lower by 22.71 pts or -0.31% at 7333.46, CAC 40 down 11.56 pts or -0.16% at 7248.52 and Euro Stoxx 50 down 14.25 pts or -0.33% at 4269.82.
• Dow Jones mini up 42 pts or +0.12% at 34869, S&P 500 mini up 5.25 pts or +0.12% at 4426, NASDAQ mini up 18.75 pts or +0.13% at 14964.5.