EQUITIES: E-Mini S&P Continues to Trade Just Ahead of 50-Day EMA

A bear threat in Eurostoxx 50 futures remains present and the latest climb appears to be a correction - for now. The sell-off between Aug 1 - 5, reinforced the bearish condition. A key support at 4846.00, the Apr 19 low, has been cleared. This highlights a stronger reversal and opens 4478.81 next, a Fibonacci projection. Firm resistance is 4873.36, the 50-day EMA. First resistance is 4777.62, the 20-day EMA. Short-term gains in S&P E-Minis are - for now - considered corrective. However, yesterday’s strong rally delivered a print above the 50-day EMA, at 5453.80. A clear break of this average would undermine the recent bearish theme and instead signal scope for a stronger recovery. This would open 5579.35, a Fibonacci retracement. A reversal lower would refocus attention on the bear trigger at 5120.00, the Aug 5 low.

• Japan's NIKKEI closed higher by 209.92 pts or +0.58% at 36442.43 and the TOPIX ended 28.35 pts higher or +1.11% at 2581.9.
• Elsewhere, in China the SHANGHAI closed lower by 17.292 pts or -0.6% at 2850.654 and the HANG SENG ended 60.7 pts lower or -0.35% at 17113.36.
• Across Europe, Germany's DAX trades higher by 72.52 pts or +0.41% at 17883.98, FTSE 100 higher by 36.56 pts or +0.44% at 8271.44, CAC 40 up 49.53 pts or +0.68% at 7325.4 and Euro Stoxx 50 up 27.5 pts or +0.59% at 4722.42.
• Dow Jones mini up 37 pts or +0.09% at 39926, S&P 500 mini down 0.75 pts or -0.01% at 5458, NASDAQ mini down 21 pts or -0.11% at 19084.75.