Latest Bounce in Eurostoxx 50 Futures Considered Corrective

Eurostoxx 50 futures maintain a softer tone and the latest bounce is considered corrective. This week’s extension reinforces current conditions and key support at 4210.00, the Sep 8 low, has been breached. The clear break confirms a resumption of the downtrend that started late July and opens 4109.90, a Fibonacci projection. Key short-term resistance has been defined at 4359.00, the Sep 15 high. A bear cycle in S&P E-minis remains in play and the contract traded lower this week, extending the current downleg. The recent break of support at 4397.75, the Aug 18 low, reinforced bearish conditions and signals scope for a continuation lower. Sights are on 4242.15, a Fibonacci retracement point. Initial firm resistance is 4472.85, the 50-day EMA. Short-term gains are considered corrective.

• Japan's NIKKEI closed lower by 14.9 pts or -0.05% at 31857.62 and the TOPIX ended 22.12 pts lower or -0.94% at 2323.39.
• Across Europe, Germany's DAX trades higher by 120.29 pts or +0.79% at 15432.19, FTSE 100 higher by 54.13 pts or +0.71% at 7650.93, CAC 40 up 64.59 pts or +0.91% at 7173.44 and Euro Stoxx 50 up 36.73 pts or +0.88% at 4194.48.
• Dow Jones mini up 156 pts or +0.46% at 34042, S&P 500 mini up 21 pts or +0.48% at 4357.5, NASDAQ mini up 101.75 pts or +0.68% at 14956.25.