E-Mini S&P Extends Corrective Recovery

Eurostoxx 50 futures traded higher yesterday as the contract extends the corrective recovery from 4187.00, the Aug 18 low. The contract has breached resistance at the 50-day EMA at 4330.6. A continuation higher would signal scope for a climb towards resistance at 4420.00. On the downside, a breach of 4187.00 would be a bearish development and confirm a resumption of the downtrend. The E-mini S&P contract traded higher yesterday and is holding on to its recent gains. Price has traded above resistance at 4520.90, the base of a bull channel, drawn from the Mar 13 low that was breached on Aug 16. A clear break of this level would strengthen the upleg and open 4560.75, the Aug 4 high. Initial support to watch lies at 4452.93, the 50-day EMA. A return below the average would be a bearish development.

• Japan's NIKKEI closed higher by 285.88 pts or +0.88% at 32619.34 and the TOPIX ended 18.62 pts higher or +0.8% at 2332.
• Elsewhere, in China the SHANGHAI closed lower by 17.261 pts or -0.55% at 3119.876 and the HANG SENG ended 100.8 pts lower or -0.55% at 18382.06.
• Across Europe, Germany's DAX trades higher by 94.29 pts or +0.59% at 15986.22, FTSE 100 higher by 1.33 pts or +0.02% at 7474.96, CAC 40 up 9.58 pts or +0.13% at 7373.98 and Euro Stoxx 50 up 12.11 pts or +0.28% at 4327.3.
• Dow Jones mini up 119 pts or +0.34% at 35073, S&P 500 mini up 5.25 pts or +0.12% at 4529.25, NASDAQ mini up 4 pts or +0.03% at 15505.25.