E-Mini S&P Continues to Trade Below Last Week's Highs

Eurostoxx 50 futures traded higher Monday and price has pierced the 4500.00 handle. This reinforces bullish conditions and confirms a resumption of the underlying uptrend. Last week’s break marked the end of a broad sideways move that started May 19 - a bullish development. Attention is on 4515.50 next, the Nov / Dec 2007 high. Key S/T support has been defined at 4331.00, the Jul 26 low. A break of this level would be bearish. The E-mini S&P contract remains below 4634.50, last Thursday’s high. The pullback from this level highlights a possible short-term bearish signal. Price has found resistance at the top of a bull channel drawn from the Mar 13 low - the channel top is at 4649.04 today. An extension lower would expose the 20-day EMA - at 4541.71 and a break of it would strengthen bearish conditions. Clearance of the channel top is required to resume the uptrend.

• Japan's NIKKEI closed higher by 304.36 pts or +0.92% at 33476.58 and the TOPIX ended 14.8 pts higher or +0.64% at 2337.36.
• Elsewhere, in China the SHANGHAI closed lower by 0.091 pts or 0% at 3290.949 and the HANG SENG ended 67.82 pts lower or -0.34% at 20011.12.
• Across Europe, Germany's DAX trades lower by 133.28 pts or -0.81% at 16325.54, FTSE 100 lower by 13.28 pts or -0.17% at 7688.83, CAC 40 down 53.3 pts or -0.71% at 7449.17 and Euro Stoxx 50 down 33.87 pts or -0.76% at 4440.93.
• Dow Jones mini down 86 pts or -0.24% at 35601, S&P 500 mini down 9.75 pts or -0.21% at 4603, NASDAQ mini down 41 pts or -0.26% at 15807.5.