Eurostoxx 50 Futures Extend Losses to 4-Month Lows

A bearish theme in Eurostoxx 50 futures remains present and this week’s sell-off reinforces current conditions. The contract has breached support at 4276.00, the Aug 8 and 15 low. The break of this level strengthens a bearish threat and exposes 4220.00, the Jul 7 low. Key short-term resistance is unchanged at 4420.00, the Aug 10 high. Initial resistance is 4353.20, the 50-day EMA. A bearish theme in the E-mini S&P contract remains intact and yesterday’s move lower reinforces this theme. This week’s bearish price action has resulted in a break of the 50-day EMA and the contract has breached channel support drawn from the Mar 13 low. The clear breakout signals scope for a continuation lower and opens 4368.50 next, the Jun 26 low. Initial firm resistance to watch is at the 50-day EMA - at 4459.03.

• Japan's NIKKEI closed lower by 175.24 pts or -0.55% at 31450.76 and the TOPIX ended 15.77 pts lower or -0.7% at 2237.29.
• Elsewhere, in China the SHANGHAI closed lower by 31.786 pts or -1% at 3131.953 and the HANG SENG ended 375.78 pts lower or -2.05% at 17950.85.
• Across Europe, Germany's DAX trades lower by 124.47 pts or -0.79% at 15561.14, FTSE 100 lower by 60.06 pts or -0.82% at 7254.86, CAC 40 down 66.46 pts or -0.92% at 7129.43 and Euro Stoxx 50 down 32.53 pts or -0.77% at 4198.16.
• Dow Jones mini down 32 pts or -0.09% at 34503, S&P 500 mini down 5 pts or -0.11% at 4378.75, NASDAQ mini down 33 pts or -0.22% at 14742.