Outlook in Eurostoxx 50 Futures Remains Bearish

A bearish theme in Eurostoxx 50 futures remains in play and last week’s extension lower reinforces current conditions. Support at 4082.00, the Oct 4 low and a bear trigger, has been cleared. This confirms a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. The focus is on the 4000.00 handle. Initial firm resistance is at 4148.00, the 20-day EMA. S&P e-minis maintain a softer tone and the contract started this week on a bearish note. Support at 4235.50, the Oct 4 low and bear trigger, has been breached. The break confirms a resumption of the downtrend and opens 4194.75, the May 24 low. Price remains below resistance at the 50-day EMA, at 4399.13. A clear breach of this average is required to strengthen a bullish condition. Initial resistance is at 4341.49, the 20-day EMA.

• Japan's NIKKEI closed higher by 207.57 pts or +0.67% at 31269.92 and the TOPIX ended 13.67 pts higher or +0.61% at 2254.4.
• Elsewhere, in China the SHANGHAI closed higher by 11.87 pts or +0.4% at 2974.114 and the HANG SENG ended 93.8 pts higher or +0.55% at 17085.33.
• Across Europe, Germany's DAX trades lower by 25.91 pts or -0.17% at 14852.86, FTSE 100 higher by 6.99 pts or +0.09% at 7396.89, CAC 40 down 22.23 pts or -0.32% at 6871.42 and Euro Stoxx 50 down 11.07 pts or -0.27% at 4054.05.
• Dow Jones mini up 25 pts or +0.08% at 33294, S&P 500 mini down 14.75 pts or -0.35% at 4256.25, NASDAQ mini down 84.25 pts or -0.57% at 14761.75.