EQUITIES: Eurostoxx 50 Futures Remain Below 20- and 50-Day EMAs

Eurostoxx 50 futures traded lower last week and a bearish tone - a correction - remains intact for now. The latest move down has resulted in a break of both the 20- and 50-day EMAs. Last Friday’s sharp sell-off signals scope for an extension lower and sights are on 4686.53, a Fibonacci retracement point.  Initial key short-term resistance has been defined at 4998.00, the Sep 3 high. First resistance is at 4872.22, the 50-day EMA. Recent weakness in S&P E-Minis highlighted the start of a corrective cycle. The contract remains in a bear-mode condition, despite this week’s gains, and scope is seen for a deeper retracement near-term. An extension lower would open 5330.00, 61.8% retracement of the Aug 5 - Sep 3 bull leg. Key resistance has been defined at 5669.75, the Sep 3 high. Initial firm resistance to watch is 5535.19, the 20-day EMA.

• Japan's NIKKEI closed lower by 539.39 pts or -1.49% at 35619.77 and the TOPIX ended 45.87 pts lower or -1.78% at 2530.67.
• Elsewhere, in China the SHANGHAI closed lower by 22.397 pts or -0.82% at 2721.795 and the HANG SENG ended 125.38 pts lower or -0.73% at 17108.71.
• Across Europe, Germany's DAX trades higher by 56.02 pts or +0.31% at 18322.1, FTSE 100 lower by 11.3 pts or -0.14% at 8194.81, CAC 40 up 13.51 pts or +0.18% at 7421.06 and Euro Stoxx 50 up 22.19 pts or +0.47% at 4769.39.
• Dow Jones mini down 161 pts or -0.39% at 40639, S&P 500 mini down 19.5 pts or -0.35% at 5484.75, NASDAQ mini down 80.5 pts or -0.43% at 18783.