Bearish Theme in E-Mini S&P Remains Present

A bearish theme in Eurostoxx 50 futures remains present and last week’s sell-off reinforces current conditions. The contract last week breached support at 4276.00, the Aug 8 and 15 low and Friday’s move lower resulted in a break of 4220.00, the Jul 7 low. This opens 4177.40, a Fibonacci retracement. Key short-term resistance is unchanged at 4420.00, the Aug 10 high. Initial firm resistance is 4348.20, the 50-day EMA. A bearish theme in the E-mini S&P contract remains intact and Friday’s sell-off reinforces this theme. Last week’s extension lower resulted in a break of the 50-day EMA and the contract breached channel support drawn from the Mar 13 low. 4368.50, the Jun 26 low, was breached Friday and attention turns to 4344.28, a Fibonacci retracement. Initial firm resistance to watch is at the 50-day EMA - at 4455.92.

• Japan's NIKKEI closed higher by 114.88 pts or +0.37% at 31565.64 and the TOPIX ended 4.2 pts higher or +0.19% at 2241.49.
• Elsewhere, in China the SHANGHAI closed lower by 38.975 pts or -1.24% at 3092.978 and the HANG SENG ended 327.56 pts lower or -1.82% at 17623.29.
• Across Europe, Germany's DAX trades higher by 110.73 pts or +0.71% at 15685.82, FTSE 100 higher by 32.57 pts or +0.45% at 7295, CAC 40 up 80.48 pts or +1.12% at 7244.59 and Euro Stoxx 50 up 40.34 pts or +0.96% at 4253.29.
• Dow Jones mini up 76 pts or +0.22% at 34641, S&P 500 mini up 15.5 pts or +0.35% at 4398.25, NASDAQ mini up 83.5 pts or +0.57% at 14827.75.