Price Action Wednesday Marks Extension of Current Downleg in E-Mini S&P

Eurostoxx 50 futures maintain a softer tone following last week’s move lower. This week’s extension also reinforces current conditions. Key support at 4210.00, the Sep 8 low, has been breached. The clear break confirms a resumption of the downtrend that started late July and paves the way for a move towards 4109.90, a Fibonacci projection. 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 the contract traded lower Wednesday, extending the current downleg. Last week’s sell-off resulted in a break of support at 4397.75, the Aug 18 low. This breach reinforced bearish conditions and signals scope for a continuation lower. Sights are on 4300.62, a Fibonacci retracement point. Initial firm resistance is 4485.10, the 50-day EMA. Short-term gains would be considered corrective.

• Japan's NIKKEI closed lower by 499.38 pts or -1.54% at 31872.52 and the TOPIX ended 34.02 pts lower or -1.43% at 2345.51.
• Elsewhere, in China the SHANGHAI closed higher by 3.159 pts or +0.1% at 3110.475 and the HANG SENG ended 238.84 pts lower or -1.36% at 17373.03.
• Across Europe, Germany's DAX trades lower by 23.04 pts or -0.15% at 15194.44, FTSE 100 lower by 45.76 pts or -0.6% at 7547.26, CAC 40 down 2.11 pts or -0.03% at 7069.61 and Euro Stoxx 50 down 8.53 pts or -0.21% at 4123.12.
• Dow Jones mini down 36 pts or -0.11% at 33757, S&P 500 mini down 2.25 pts or -0.05% at 4311.25, NASDAQ mini down 22.75 pts or -0.15% at 14716.