Post-Fed Dip in E-Mini S&P Reinforces Bearish Conditions

A strong sell-off in Eurostoxx 50 futures on Monday highlighted a bearish start to this week’s session. A continuation lower would threaten the recent short-term bullish theme and refocus attention on key near-term support at 4210.00, the Sep 8 low. Clearance of this level would confirm a resumption of the downtrend that started late July. Key short-term resistance has been defined at 4359.00, the Sep 15 high. A break would be bullish. A bear cycle in S&P E-minis remains in play and this week’s break lower reinforces current conditions. Support at 4483.25, the Sep 7 low, has been breached, confirming a resumption of the bear leg that started Sep 1. A continuation lower would expose 4397.75, the Aug 18 low and the next key support. Initial key resistance has been defined at 4566.00, the Sep 15 high. A break of this level would be seen as a bullish development.

• Japan's NIKKEI closed lower by 452.75 pts or -1.37% at 32571.03 and the TOPIX ended 22.59 pts lower or -0.94% at 2383.41.
• Elsewhere, in China the SHANGHAI closed lower by 23.867 pts or -0.77% at 3084.701 and the HANG SENG ended 230.19 pts lower or -1.29% at 17655.41.
• Across Europe, Germany's DAX trades lower by 126.8 pts or -0.8% at 15654.5, FTSE 100 lower by 40.14 pts or -0.52% at 7691.49, CAC 40 down 80.15 pts or -1.09% at 7249.38 and Euro Stoxx 50 down 41.78 pts or -0.98% at 4233.72.
• Dow Jones mini down 74 pts or -0.21% at 34653, S&P 500 mini down 17.25 pts or -0.39% at 4429.75, NASDAQ mini down 89.75 pts or -0.59% at 15062.