Bearish Threat in E-Mini S&P Intact Despite Latest Recovery

A bearish theme in Eurostoxx 50 futures remains present and last week’s sell-off reinforces current conditions. The contract has breached support at 4276.00, the Aug 8 and 15 low and cleared 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 4343.80, the 50-day EMA. A bearish theme in the E-mini S&P contract remains intact and last week’s price action reinforces this theme. The move 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 last Friday and attention turns to 4344.28, a Fibonacci retracement. Initial firm resistance to watch is at the 50-day EMA - at 4454.24.

• Japan's NIKKEI closed higher by 291.07 pts or +0.92% at 31856.71 and the TOPIX ended 24.22 pts higher or +1.08% at 2265.71.
• Elsewhere, in China the SHANGHAI closed higher by 27.356 pts or +0.88% at 3120.334 and the HANG SENG ended 167.72 pts higher or +0.95% at 17791.01.
• Across Europe, Germany's DAX trades higher by 139.85 pts or +0.9% at 15743.32, FTSE 100 higher by 18 pts or +0.25% at 7275.7, CAC 40 up 71.16 pts or +0.99% at 7269.22 and Euro Stoxx 50 up 45.97 pts or +1.09% at 4270.84.
• Dow Jones mini up 51 pts or +0.15% at 34575, S&P 500 mini up 13.5 pts or +0.31% at 4426, NASDAQ mini up 66.75 pts or +0.45% at 15052.5.