Eurostoxx 50 Futures Extend Pullback From Monday High

Eurostoxx 50 futures have found resistance at 4513.00, Monday’s high, and the contract has traded sharply lower. For now, the pullback is considered corrective. However, the move lower has exposed support at the 50-day EMA. The average intersects at 4371.40 and a clear break, if seen, would threaten recent bullish developments and expose 4331.00, the Jul 26 low and a key support. Key resistance and the bull trigger is at 4513.00. The E-mini S&P contract continues to trade below 4634.50, the Jul 27 high. The pullback from this level highlights a possible short-term bearish signal. Price has found resistance at the top of a bull channel drawn from the Mar 13 low - the channel top is at 4654.42 today. An extension lower would expose the 20-day EMA - at 4547.38 and a break of it would strengthen bearish conditions. Clearance of the channel top is required to resume the uptrend.

• Japan's NIKKEI closed lower by 768.89 pts or -2.3% at 32707.69 and the TOPIX ended 35.6 pts lower or -1.52% at 2301.76.
• Elsewhere, in China the SHANGHAI closed lower by 29.259 pts or -0.89% at 3261.69 and the HANG SENG ended 493.74 pts lower or -2.47% at 19517.38.
• Across Europe, Germany's DAX trades lower by 275.1 pts or -1.69% at 15966.86, FTSE 100 lower by 141.51 pts or -1.85% at 7524.85, CAC 40 down 114.64 pts or -1.55% at 7292.83 and Euro Stoxx 50 down 75.24 pts or -1.71% at 4333.03.
• Dow Jones mini down 279 pts or -0.78% at 35480, S&P 500 mini down 46.25 pts or -1.01% at 4555, NASDAQ mini down 215 pts or -1.36% at 15601.5.