EQUITIES: Gains for E-Mini S&P Reinforce Current Bull Cycle

Eurostoxx 50 futures have traded higher, starting the week on a bullish note and extending the recovery that started Aug 5. The contract has traded through the 50-day EMA, at 4867.41. An extension higher would undermine the recent bearish theme and highlight a stronger reversal. This would open 4951.00 next, the Jul 31 high. For bears, a reversal lower would refocus attention on the bear trigger at 4494.00, the Aug 5 low. S&P E-Minis traded higher Monday, reinforcing the current bull cycle and confirming an extension of the reversal that started Aug 5. Price has cleared resistance at 2600.75, the Aug 1 high and this signals scope for an extension towards key resistance and the bull trigger at 5721.25, the Jul 16 high. A break would confirm a resumption of the primary uptrend. On the downside, support to watch lies at 5470.32, the 50-day EMA.

• Japan's NIKKEI closed higher by 674.3 pts or +1.8% at 38062.92 and the TOPIX ended 29.4 pts higher or +1.11% at 2670.54.
• Elsewhere, in China the SHANGHAI closed lower by 27.013 pts or -0.93% at 2866.661 and the HANG SENG ended 58.49 pts lower or -0.33% at 17511.08.
• Across Europe, Germany's DAX trades higher by 20.81 pts or +0.11% at 18443.02, FTSE 100 lower by 48.51 pts or -0.58% at 8308.39, CAC 40 up 13.07 pts or +0.17% at 7515.44 and Euro Stoxx 50 up 11.8 pts or +0.24% at 4883.22.
• Dow Jones mini down 25 pts or -0.06% at 40999, S&P 500 mini down 2.25 pts or -0.04% at 5628.25, NASDAQ mini down 4.25 pts or -0.02% at 19855.5.