Move Lower in Eurostoxx 50 Futures Last Week Reinforces Current Bearish Theme

A bearish theme in Eurostoxx 50 futures remains in play and last week’s move lower reinforces current conditions. The contract has traded through support at 4082.00, the Oct 4 low and a bear trigger. This break confirms a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. The focus is on 4034, the Mar 24 low (cont). Initial firm resistance is at 4166.00, the 20-day EMA. S&P e-minis maintain a softer tone. Attention is on 4235.50, the Oct 4 low and bear trigger. A break of this support would confirm a resumption of the downtrend and open 4197.75, the May 24 low. The contract continues to trade below resistance at the 50-day EMA, at 4410.92. A clear breach of this average is required to strengthen bullish conditions and this would open 4479.38, trendline resistance drawn from the Jul 27 high.

• Japan's NIKKEI closed lower by 259.81 pts or -0.83% at 30999.55 and the TOPIX ended 16.84 pts lower or -0.75% at 2238.81.
• Across Europe, Germany's DAX trades lower by 46.99 pts or -0.32% at 14751.08, FTSE 100 lower by 16.09 pts or -0.22% at 7384.63, CAC 40 up 4.95 pts or +0.07% at 6821.38 and Euro Stoxx 50 up 0.12 pts or +0% at 4024.83.
• Dow Jones mini down 57 pts or -0.17% at 33201, S&P 500 mini down 5 pts or -0.12% at 4243.75, NASDAQ mini down 19.25 pts or -0.13% at 14646.25.