Move Lower in E-Mini S&P This Week Reinforces Bearish Conditions

A bearish threat in Eurostoxx 50 futures remains present following the recent reversal from 4513.00, the Jul 31 high. Yesterday’s sharp sell-off reinforces current bearish conditions. The contract is testing support at 4276.00, the Aug 8 and 15 low. Clearance of this level would strengthen a bearish threat and expose 4220.00, the Jul 7 low. Key short-term resistance is unchanged at 4420.00, Aug 10 high. Bearish conditions in the E-mini S&P contract remain intact and this week’s move lower has reinforced current conditions. The contract is through the 50-day EMA and has breached channel support drawn from the Mar 13 low - the channel base is at 4461.67. A clear channel breakout would signal scope for a continuation lower and open 4411.25, the Jul 10 low. Initial resistance to watch is at the 20-day EMA - at 4515.45.

• Japan's NIKKEI closed lower by 472.07 pts or -1.46% at 31766.82 and the TOPIX ended 29.47 pts lower or -1.29% at 2260.84.
• Elsewhere, in China the SHANGHAI closed lower by 26.048 pts or -0.82% at 3150.128 and the HANG SENG ended 251.81 pts lower or -1.36% at 18329.3.
• Across Europe, Germany's DAX trades higher by 32.58 pts or +0.21% at 15800.04, FTSE 100 lower by 8.03 pts or -0.11% at 7381.01, CAC 40 up 25.2 pts or +0.35% at 7292.9 and Euro Stoxx 50 up 11.53 pts or +0.27% at 4300.1.
• Dow Jones mini up 71 pts or +0.2% at 35079, S&P 500 mini up 10.25 pts or +0.23% at 4464.25, NASDAQ mini up 47.25 pts or +0.31% at 15154.25.