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

Eurostoxx 50 futures maintain a softer tone following last week’s move lower. Attention is on key near-term support at 4210.00, the Sep 8 low. This level has been pierced, a clear break would confirm a resumption of the downtrend that started late July and pave the way for a move towards 4163.00, a Fibonacci projection. Key short-term resistance has been defined at 4359.00, the Sep 15 high. A break would be bullish. A bear cycle in S&P E-minis remains in play and last week’s break lower reinforces current conditions. Last Thursday’s sell-off resulted in a break of support at 4397.75, the Aug 18 low. The breach reinforces bearish conditions and signals scope for a continuation lower near-term. Sights are on 4352.50, the Jun 8 low. Further out, scope is seen for a move to 4318.00, the Jun 2 low. Initial firm resistance is 4496.68, the 50-day EMA.

• Japan's NIKKEI closed higher by 276.21 pts or +0.85% at 32678.62 and the TOPIX ended 9.23 pts higher or +0.39% at 2385.5.
• Elsewhere, in China the SHANGHAI closed lower by 16.825 pts or -0.54% at 3115.607 and the HANG SENG ended 328.16 pts lower or -1.82% at 17729.29.
• Across Europe, Germany's DAX trades lower by 83.85 pts or -0.54% at 15472.85, FTSE 100 lower by 39.84 pts or -0.52% at 7643.9, CAC 40 down 38.87 pts or -0.54% at 7145.95 and Euro Stoxx 50 down 24.43 pts or -0.58% at 4182.73.
• Dow Jones mini down 28 pts or -0.08% at 34202, S&P 500 mini down 5.5 pts or -0.13% at 4355.25, NASDAQ mini down 36.75 pts or -0.25% at 14832.25.