E-Mini S&P Maintains Price Sequence of Lower Lows and Lower Highs

Eurostoxx 50 futures trend conditions remain bearish and short-term gains appear to be corrective. The contract has traded below 4128.00, the Sep 27 low. This confirms a resumption of the downtrend that started late July and signals scope for a move towards 4055.40, a Fibonacci retracement point. Initial firm resistance is at 4216.30, the 20-day EMA. A break of this average would signal a possible short-term base. A bear cycle in S&P E-minis remains in play. The contract traded lower yesterday, confirming a resumption of the bear leg once again and maintaining the price sequence of lower lows and lower highs. This signals scope for weakness towards 4194.75, the May 24 low. Pivot resistance is 4447.76, the 50-day EMA. Ahead of the 50-day average is resistance at 4391.25, the 20-day EMA.

• Japan's NIKKEI closed higher by 548.48 pts or +1.8% at 31075.36 and the TOPIX ended 44.87 pts higher or +2.02% at 2263.76.
• Across Europe, Germany's DAX trades higher by 48.36 pts or +0.32% at 15148.59, FTSE 100 higher by 34.78 pts or +0.47% at 7447.2, CAC 40 up 18.6 pts or +0.27% at 7015.33 and Euro Stoxx 50 up 18.87 pts or +0.46% at 4118.72.
• Dow Jones mini down 41 pts or -0.12% at 33285, S&P 500 mini down 4.75 pts or -0.11% at 4293, NASDAQ mini down 12.25 pts or -0.08% at 14911.25.