EQUITIES: E-Mini S&P Extends Gradual Recovery Off Last Week's Lows

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, reinforces 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 4879.91, the 50-day EMA. First resistance is 4784.42, the 20-day EMA. Short-term gains in S&P E-Minis are - for now - considered corrective and the 50-day EMA marks a firm resistance, at 5453.59. Clearance of this average is required to alter the picture and signal scope for stronger gains. The contract traded lower on Aug 5 and this confirmed an extension of the bear cycle. The move down resulted in a print below 5185.50, 76.4% of the Apr 19 - Jul 16 bear leg. A clear break of this level would open 5092.00 next, the May 2 low.

• Japan's NIKKEI closed higher by 1207.51 pts or +3.45% at 36232.51 and the TOPIX ended 70.25 pts higher or +2.83% at 2553.55.
• Elsewhere, in China the SHANGHAI closed higher by 9.741 pts or +0.34% at 2867.946 and the HANG SENG ended 62.41 pts higher or +0.36% at 17174.06.
• Across Europe, Germany's DAX trades higher by 15.49 pts or +0.09% at 17742.15, FTSE 100 lower by 6.65 pts or -0.08% at 8203.41, CAC 40 down 5.8 pts or -0.08% at 7245.01 and Euro Stoxx 50 up 4.92 pts or +0.11% at 4677.17.
• Dow Jones mini up 67 pts or +0.17% at 39547, S&P 500 mini up 18.25 pts or +0.34% at 5388, NASDAQ mini up 102.75 pts or +0.55% at 18741.