Move Lower in Eurostoxx 50 Futures This Week Reinforces Bearish Conditions

A bearish theme in Eurostoxx 50 futures remains in play and this week’s move lower reinforces bearish conditions. The contract has traded through support at 4082.00, the Oct 4 low and a bear trigger. This confirms a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. The focus is on 4055.40, a Fibonacci retracement. Initial resistance is at 4178.80, the 20-day EMA.S&P e-minis maintain a softer tone and the contract continues to trade below resistance at the 50-day EMA, at 4482.75. A clear breach of this average is required to strengthen bullish conditions and this would open 4486.12, trendline resistance drawn from the Jul 27 high. On the downside, a deeper pullback would open 4235.50, the Oct 4 low and bear trigger. A break of this support would confirm a resumption of the downtrend.

• Japan's NIKKEI closed lower by 171.26 pts or -0.54% at 31259.36 and the TOPIX ended 8.51 pts lower or -0.38% at 2255.65.
• Elsewhere, in China the SHANGHAI closed lower by 22.334 pts or -0.74% at 2983.059 and the HANG SENG ended 123.76 pts lower or -0.72% at 17172.13.
• Across Europe, Germany's DAX trades lower by 116.03 pts or -0.77% at 14929.82, FTSE 100 lower by 14.95 pts or -0.2% at 7485.38, CAC 40 down 45.35 pts or -0.66% at 6876.84 and Euro Stoxx 50 down 25.7 pts or -0.63% at 4065.09.
• Dow Jones mini down 19 pts or -0.06% at 33530, S&P 500 mini down 3 pts or -0.07% at 4300, NASDAQ mini down 22.5 pts or -0.15% at 14869.75.