E-Mini S&P Pares the Majority of Wednesday's Losses

A bearish threat in Eurostoxx 50 futures remains present following the reversal from 4513.00, the Jul 31 high. Tuesday’s move lower reinforces the current condition and price remains below both the 20- and 50-day EMAs. Furthermore, key support at 4331.00, the Jul 26 low, has been cleared. This further strengthens current conditions and opens 4220.00, the Jul 7 low and a reversal trigger. Initial firm resistance is 4424.00, Aug 2 high. Bearish conditions in the E-mini S&P contract remain intact and price is trading closer to its recent lows. Last week’s sell-off resulted in a break of support at the 20-day EMA following a recent failure at the top of the bull channel - this also highlights a bearish development and the risk of an extension lower near-term. Further downside would open 4460.64, the 50-day EMA. Resistance to watch is 4560.75, the Aug 4 high.

• Japan's NIKKEI closed higher by 269.32 pts or +0.84% at 32473.65 and the TOPIX ended 20.94 pts higher or +0.92% at 2303.51.
• Elsewhere, in China the SHANGHAI closed higher by 10.073 pts or +0.31% at 3254.56 and the HANG SENG ended 2.23 pts higher or +0.01% at 19273.08.
• Across Europe, Germany's DAX trades higher by 83.68 pts or +0.53% at 15950.77, FTSE 100 higher by 8.41 pts or +0.11% at 7592.03, CAC 40 up 80.47 pts or +1.1% at 7403.75 and Euro Stoxx 50 up 41.78 pts or +0.97% at 4360.11.
• Dow Jones mini up 191 pts or +0.54% at 35376, S&P 500 mini up 26 pts or +0.58% at 4509.25, NASDAQ mini up 100.75 pts or +0.66% at 15266.75.