Break Lower in E-Mini S&P Tuesday Reinforces Bearish Conditions

A strong sell-off in Eurostoxx 50 futures on Monday highlighted a bearish start to this week’s session. A continuation lower would threaten the recent short-term bullish theme and refocus attention on key near-term support at 4210.00, the Sep 8 low. Clearance of this level would confirm a resumption of the downtrend that started late July. Key short-term resistance has been defined at 4359.00, the Sep 15 high. A break would be bullish. A bear cycle in S&P E-minis remains in play and yesterday’s break lower reinforces current conditions. The contract has breached support at 4483.25, the Sep 7 low. This confirms a resumption of the bear leg that started Sep 1. A continuation lower would expose 4397.75, the Aug 18 low. Initial key resistance has been defined at 4566.00, the Sep 15 high. Clearance of this level would instead reinstate a bullish theme exposing 4597.50, Sep 1 high.

• Japan's NIKKEI closed lower by 218.81 pts or -0.66% at 33023.78 and the TOPIX ended 24.3 pts lower or -1% at 2406.
• Elsewhere, in China the SHANGHAI closed lower by 16.389 pts or -0.52% at 3108.568 and the HANG SENG ended 111.57 pts lower or -0.62% at 17885.6.
• Across Europe, Germany's DAX trades higher by 100.94 pts or +0.64% at 15768.4, FTSE 100 higher by 43.28 pts or +0.57% at 7707.26, CAC 40 up 25.27 pts or +0.35% at 7307.12 and Euro Stoxx 50 up 22.91 pts or +0.54% at 4265.48.
• Dow Jones mini up 46 pts or +0.13% at 34858, S&P 500 mini up 7 pts or +0.16% at 4496.25, NASDAQ mini up 27.25 pts or +0.18% at 15398.75.