Recent Break Lower in E-Mini S&P Signals Continuation of Bear Cycle

Eurostoxx 50 futures maintain a softer tone following this week’s move lower. Attention is on key near-term support at 4210.00, the Sep 8 low. This level has been pierced, a clear break would confirm a resumption of the downtrend that started late July and pave the way for a move towards 4163.00, 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 this week’s break lower reinforces current conditions. Thursday’s sell-off has resulted in a break of support at 4397.75, the Aug 18 low. The breach reinforces bearish conditions and signals scope for a continuation lower near-term. Sights are on 4352.50, the Jun 8 low. Further out, scope is seen for a move to 4318.00, the Jun 2 low. Initial firm resistance is 4502.22, the 50-day EMA.

• Japan's NIKKEI closed lower by 168.62 pts or -0.52% at 32402.41 and the TOPIX ended 7.14 pts lower or -0.3% at 2376.27.
• Elsewhere, in China the SHANGHAI closed higher by 47.731 pts or +1.55% at 3132.432 and the HANG SENG ended 402.04 pts higher or +2.28% at 18057.45.
• Across Europe, Germany's DAX trades lower by 43.01 pts or -0.28% at 15501.56, FTSE 100 higher by 22.08 pts or +0.29% at 7687.07, CAC 40 down 49.41 pts or -0.68% at 7148.64 and Euro Stoxx 50 down 17.97 pts or -0.43% at 4186.09.
• Dow Jones mini up 14 pts or +0.04% at 34343, S&P 500 mini up 8 pts or +0.18% at 4379, NASDAQ mini up 57.75 pts or +0.39% at 14916.25.