E-Mini S&P Bear Cycle Remains in Play

A bear cycle in Eurostoxx 50 futures remains in play and the contract traded lower Friday before finding support. Price has pierced key support at 4187.00, the Aug 18 low and bear trigger. A clear break of this level would strengthen bearish conditions and open 4177.40 next, a Fibonacci retracement. Key resistance has been defined at 4358.00, the Aug 30 high. Initial firm resistance is seen at 4284.8, the 20-day EMA. The E-mini S&P contract traded lower last week and a bear cycle remains in play. Key resistance has been defined at 4597.50, Sep 1 high. A break is required to reinstate the recent bullish theme. A resumption of weakness would signal scope for a move towards the key support and bear trigger at 4397.75, the Aug 18 low. A break of this support would highlight a short-term reversal. For bulls, clearance of 4597.50 would open 4685.25, Jul 27 high.

• Japan's NIKKEI closed lower by 139.08 pts or -0.43% at 32467.76 and the TOPIX ended 1.46 pts higher or +0.06% at 2360.48.
• Elsewhere, in China the SHANGHAI closed higher by 26.06 pts or +0.84% at 3142.779 and the HANG SENG ended 105.62 pts lower or -0.58% at 18096.45.
• Across Europe, Germany's DAX trades higher by 67.25 pts or +0.43% at 15807.54, FTSE 100 higher by 33.4 pts or +0.45% at 7509.74, CAC 40 up 45.12 pts or +0.62% at 7286.17 and Euro Stoxx 50 up 24.92 pts or +0.59% at 4262.05.
• Dow Jones mini up 66 pts or +0.19% at 34682, S&P 500 mini up 16.25 pts or +0.36% at 4478.75, NASDAQ mini up 85.75 pts or +0.56% at 15388.75.