E-Mini S&P Contract Remains Firm and Holds Onto Last Week's Gains

A short-term bull cycle in Eurostoxx 50 futures remains intact and the contract is holding on to last week’s gains. Price has recently cleared resistance at both the 20- and 50-day EMAs - a bullish development. Note that last Tuesday’s gains resulted in a breach of resistance at 4256.00, the Oct 12 high, reinforcing the bullish theme The focus is on 4359.00, the Sep 15 high. Initial firm support to watch is at 4215.70, the 20-day EMA. S&P e-minis are unchanged and maintain a firmer tone. The contract traded sharply higher last Tuesday and is holding on to its recent gains. Resistance at 4411.88, a trendline drawn from the Jul 27 high, has been cleared. This reinforces bullish conditions and signals scope for a climb towards 4552.38, a Fibonacci retracement. On the downside, initial firm support is seen at 4400.39, the 20-day EMA.

• Japan's NIKKEI closed lower by 197.17 pts or -0.59% at 33388.03 and the TOPIX ended 18.45 pts lower or -0.77% at 2372.6.
• Elsewhere, in China the SHANGHAI closed higher by 13.954 pts or +0.46% at 3068.319 and the HANG SENG ended 323.88 pts higher or +1.86% at 17778.07.
• Across Europe, Germany's DAX trades lower by 25.84 pts or -0.16% at 15895.05, FTSE 100 lower by 11.66 pts or -0.16% at 7492.94, CAC 40 up 12.31 pts or +0.17% at 7246.72 and Euro Stoxx 50 down 6.72 pts or -0.15% at 4334.45.
• Dow Jones mini up 16 pts or +0.05% at 35030, S&P 500 mini up 3.5 pts or +0.08% at 4531.25, NASDAQ mini up 20.25 pts or +0.13% at 15916.75.