Latest Recovery in E-Mini S&P Deemed Technically Corrective

A bearish theme in Eurostoxx 50 futures remains present and the latest recovery appears to be a correction. The contract has recently breached support at 4276.00, the Aug 8 and 15 low and cleared 4220.00, the Jul 7 low. This opens 4177.40, a Fibonacci retracement. Key short-term resistance is unchanged at 4420.00, the Aug 10 high. Initial firm resistance is 4341.10, the 50-day EMA. A bearish theme in the E-mini S&P contract remains intact and this week’s recovery appears to be a correction. Last week’s price action reinforces this theme. The move lower resulted in a break of the 50-day EMA and a breach of channel support drawn from the Mar 13 low. The Jun 26 low of 4368.50, was breached last Friday and attention is on 4344.28, a Fibonacci retracement. Initial firm resistance is at 4452.08, the 50-day EMA.

• Japan's NIKKEI closed higher by 153.55 pts or +0.48% at 32010.26 and the TOPIX ended 11.34 pts higher or +0.5% at 2277.05.
• Elsewhere, in China the SHANGHAI closed lower by 41.932 pts or -1.34% at 3078.402 and the HANG SENG ended 54.91 pts higher or +0.31% at 17845.92.
• Across Europe, Germany's DAX trades higher by 65.64 pts or +0.42% at 15782.35, FTSE 100 higher by 46.96 pts or +0.65% at 7323.88, CAC 40 up 31.89 pts or +0.44% at 7277.58 and Euro Stoxx 50 up 17.94 pts or +0.42% at 4282.21.
• Dow Jones mini up 133 pts or +0.39% at 34487, S&P 500 mini up 23.25 pts or +0.53% at 4423.75, NASDAQ mini up 105.75 pts or +0.71% at 15068.75.