Extension Lower in E-Mini S&P Confirms Short-Term Bearish Conditions

Eurostoxx 50 futures have traded to a fresh S/T cycle low today. A bearish corrective cycle remains in play and the move down this month has allowed an overbought trend condition to unwind. The contract has breached support at 4858.80, the 50-day EMA and a key pivot price point. The clear break of this average signal scope for a deeper retracement and opens 4711.00, the Feb 19 low. Initial firm resistance to watch is 4933.00, the 20-day EMA. The short-term trend condition in S&P E-Minis is unchanged and remains bearish. Today’s extension reinforces current short-term conditions. The contract has this week cleared support at the 50-day EMA, signalling scope for a continuation lower near-term. Sights are on 4907.57 next, a Fibonacci retracement. Firm resistance is seen at 5181.29, the 20-day EMA. A clear break of the average would signal a possible reversal.

• Japan's NIKKEI closed lower by 1011.35 pts or -2.66% at 37068.35 and the TOPIX ended 51.13 pts lower or -1.91% at 2626.32.
• Elsewhere, in China the SHANGHAI closed lower by 8.964 pts or -0.29% at 3065.261 and the HANG SENG ended 161.73 pts lower or -0.99% at 16224.14.
• Across Europe, Germany's DAX trades lower by 140.08 pts or -0.79% at 17697.65, FTSE 100 lower by 37.89 pts or -0.48% at 7839.26, CAC 40 down 44.75 pts or -0.56% at 7977.87 and Euro Stoxx 50 down 35.31 pts or -0.72% at 4900.98.
• Dow Jones mini down 148 pts or -0.39% at 37859, S&P 500 mini down 24.5 pts or -0.49% at 5024.75, NASDAQ mini down 130 pts or -0.74% at 17418.25.