EQUITIES: This Week’s Recovery E-Mini S&P Highlights a Bullish Reversal

Despite a short-term bounce, Eurostoxx 50 futures continue to trade closer to their recent lows. The latest move down has resulted in a break of both the 20- and 50-day EMAs. A resumption of the bear leg would signal scope for weakness towards 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 4865.79, the 50-day EMA. This week’s recovery in S&P E-Minis, highlights a bullish reversal and the end of the corrective cycle between Sep 3 - 6. The contract is trading above the 20- and 50-day EMAs and a continuation higher would signal scope for a test of 5669.75, the Sep 3 high. Clearance of this level would open 5721.25, the Jul 16 high and bull trigger. On the downside, a reversal lower and a breach of 5394.00, the Sep 6 low, would reinstate a bearish theme.

• Japan's NIKKEI closed lower by 251.51 pts or -0.68% at 36581.76 and the TOPIX ended 21.36 pts lower or -0.82% at 2571.14.
• Elsewhere, in China the SHANGHAI closed lower by 13.033 pts or -0.48% at 2704.09 and the HANG SENG ended 128.7 pts higher or +0.75% at 17369.09.
• Across Europe, Germany's DAX trades higher by 66.06 pts or +0.36% at 18582.62, FTSE 100 lower by 7.84 pts or -0.1% at 8232.55, CAC 40 up 16.28 pts or +0.22% at 7450.54 and Euro Stoxx 50 up 10.59 pts or +0.22% at 4824.
• Dow Jones mini up 23 pts or +0.06% at 41169, S&P 500 mini up 5.5 pts or +0.1% at 5607.75, NASDAQ mini down 3.75 pts or -0.02% at 19443.75.