E-Mini S&P Testing Recent Lows

A bearish threat in Eurostoxx 50 futures remains present following the reversal from 4513.00, Jul 31 high. This week’s gains appear to be a correction. Tuesday’s move lower reinforced the current condition and the recent breach of the 20- and 50-day EMAs, strengthens a bearish threat. Furthermore, key support at 4331.00, the Jul 26 low, has been cleared. This opens 4220.00, the Jul 7 low. 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 latest lows. Recent weakness resulted in a break of support at the 20-day EMA, following a failure at the top of the bull channel drawn from the Mar 13 low. This highlights a bearish development and the risk of an extension lower near-term. Further downside would open 4461.63, the 50-day EMA. Resistance to watch is 4560.75, the Aug 4 high.

• In China the SHANGHAI closed lower by 65.312 pts or -2.01% at 3189.248 and the HANG SENG ended 173.07 pts lower or -0.9% at 19075.19.
• Across Europe, Germany's DAX trades lower by 120.65 pts or -0.75% at 15876.74, FTSE 100 lower by 79.39 pts or -1.04% at 7539.53, CAC 40 down 76.75 pts or -1.03% at 7357.02 and Euro Stoxx 50 down 49.99 pts or -1.14% at 4334.45.
• Dow Jones mini down 17 pts or -0.05% at 35233, S&P 500 mini down 6 pts or -0.13% at 4480, NASDAQ mini down 34.75 pts or -0.23% at 15166.