EQUITIES: E-Mini S&P Returns Lower Following Poor After-Market Earnings

A bull cycle in Eurostoxx 50 futures remains intact, despite the pullback in prices into the Friday close. Prices recovered well across the Monday and Tuesday sessions, however the move lower last week undermines the bullish theme somewhat, with price having tested the bear trigger at 4860.00, the Jun 14 low. Clearance of this level would expose 4846.00, the Apr 19 low and a key reversal point. For bulls, a move higher and a break of 5087.00, the Jul 12 high, would again highlight a bullish theme. E-mini S&P prices returned lower early Wednesday on the back of poor after-market earnings, pressuring the Jul 19 lows at 5542.00. Any renewed weakness through here would challenge the 50-day EMA and key support of 5501.50. The broader trend condition in S&P E-Minis remains bullish and the slip lower into last week’s close appears to be a correction. MA studies are in a clear bull-mode set-up, highlighting positive market sentiment. Sights are on 5741.34, a Fibonacci projection. 

• Japan's NIKKEI closed lower by 439.54 pts or -1.11% at 39154.85 and the TOPIX ended 40.27 pts lower or -1.42% at 2793.12.
• Elsewhere, in China the SHANGHAI closed lower by 13.416 pts or -0.46% at 2901.952 and the HANG SENG ended 158.31 pts lower or -0.91% at 17311.05.
• Across Europe, Germany's DAX trades lower by 186.6 pts or -1.01% at 18370.92, FTSE 100 lower by 37.07 pts or -0.45% at 8130.01, CAC 40 down 124.28 pts or -1.64% at 7474.35 and Euro Stoxx 50 down 62.17 pts or -1.26% at 4854.63.
• Dow Jones mini down 201 pts or -0.49% at 40414, S&P 500 mini down 42.25 pts or -0.75% at 5556.5, NASDAQ mini down 213.25 pts or -1.07% at 19711.