Free Trial

EQUITIES: Bear Threat in Eurostoxx 50 Futures Still Present Despite Latest Gains

EQUITIES

Eurostoxx 50 futures are holding on to their recent gains. Despite the latest recovery, a bear threat is still present. The sell-off between Sep 3 - 6, resulted in a move below both the 20- and 50-day EMAs. A resumption of the bear leg would signal scope for weakness towards 4686.53, a Fibonacci retracement point. First resistance is at 4863.45, the 50-day EMA. A clear break of this average would strengthen a bullish condition. Last week’s recovery in S&P E-Minis, highlights a bullish reversal and the end of the Sep 3 - 6 corrective cycle. The contract is trading above the 20- and 50-day EMAs and a continuation higher would open 5730.50, the Sep 3 high. Clearance of this level would expose 5785.00, the Jul 16 high and bull trigger. A reversal lower and a breach of 5451.25, the Sep 6 low, would reinstate a bearish theme. First support is 5583.10, the 50-day EMA.

  • Japan's NIKKEI closed lower by 378.54 pts or -1.03% at 36203.22 and the TOPIX ended 15.38 pts lower or -0.6% at 2555.76.
  • Across Europe, Germany's DAX trades higher by 58.62 pts or +0.31% at 18692.3, FTSE 100 higher by 60.86 pts or +0.74% at 8339.44, CAC 40 up 34.77 pts or +0.47% at 7484.21 and Euro Stoxx 50 up 21.41 pts or +0.44% at 4849.04.
  • Dow Jones mini up 71 pts or +0.17% at 41731, S&P 500 mini up 13.25 pts or +0.24% at 5651.5, NASDAQ mini up 72.25 pts or +0.37% at 19505.25.
245 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Eurostoxx 50 futures are holding on to their recent gains. Despite the latest recovery, a bear threat is still present. The sell-off between Sep 3 - 6, resulted in a move below both the 20- and 50-day EMAs. A resumption of the bear leg would signal scope for weakness towards 4686.53, a Fibonacci retracement point. First resistance is at 4863.45, the 50-day EMA. A clear break of this average would strengthen a bullish condition. Last week’s recovery in S&P E-Minis, highlights a bullish reversal and the end of the Sep 3 - 6 corrective cycle. The contract is trading above the 20- and 50-day EMAs and a continuation higher would open 5730.50, the Sep 3 high. Clearance of this level would expose 5785.00, the Jul 16 high and bull trigger. A reversal lower and a breach of 5451.25, the Sep 6 low, would reinstate a bearish theme. First support is 5583.10, the 50-day EMA.

  • Japan's NIKKEI closed lower by 378.54 pts or -1.03% at 36203.22 and the TOPIX ended 15.38 pts lower or -0.6% at 2555.76.
  • Across Europe, Germany's DAX trades higher by 58.62 pts or +0.31% at 18692.3, FTSE 100 higher by 60.86 pts or +0.74% at 8339.44, CAC 40 up 34.77 pts or +0.47% at 7484.21 and Euro Stoxx 50 up 21.41 pts or +0.44% at 4849.04.
  • Dow Jones mini up 71 pts or +0.17% at 41731, S&P 500 mini up 13.25 pts or +0.24% at 5651.5, NASDAQ mini up 72.25 pts or +0.37% at 19505.25.