Friday's Sell-Off Reinforces Bearish Theme in E-Mini S&P

Eurostoxx 50 futures traded sharply higher last Thursday and the contract remains closer to its recent highs. Last week’s gains threaten the recent bearish theme and signal a possible short-term reversal with a key support defined at 4210.00, the Sep 8 low. A continuation higher would expose resistance at 4388.00, the Aug 30 high where a break would strengthen a bullish case. For bears, a break of 4210.00, resumes the recent downtrend. A bear cycle in the E-mini S&P contract remains in play. Friday’s strong sell-off reinforces this theme and suggests the recent shallow correction higher is over. Key short-term support has been defined at 4483.25, the Sep 7 low. Clearance of this level would be seen as a bearish development and open 4397.75, the Aug 18 low and a bear trigger. For bulls, a resumption of gains would instead open 4597.50, the Sep 1 high.

• In China the SHANGHAI closed higher by 8.189 pts or +0.26% at 3125.932 and the HANG SENG ended 252.34 pts lower or -1.39% at 17930.55.
• Across Europe, Germany's DAX trades lower by 74.91 pts or -0.47% at 15817.37, FTSE 100 lower by 3.34 pts or -0.04% at 7707.85, CAC 40 down 59.38 pts or -0.8% at 7319.44 and Euro Stoxx 50 down 23.33 pts or -0.54% at 4271.72.
• Dow Jones mini up 51 pts or +0.15% at 34978, S&P 500 mini up 7.75 pts or +0.17% at 4505.75, NASDAQ mini up 32.5 pts or +0.21% at 15424.75.