Recent Gains in E-Mini S&P Considered Corrective

Despite the latest recovery, a bear cycle in Eurostoxx 50 futures remains in play. Price has recently pierced key support at 4187.00, the Aug 18 low and a bear trigger. A clear break of this level would strengthen bearish conditions and open 4177.40 next, a Fibonacci retracement. Key resistance has been defined at 4358.00, the Aug 30 high. Initial firm resistance is seen at 4282.20 the 20-day EMA. The E-mini S&P contract traded higher Monday. For now, gains are considered corrective and a bear cycle remains in play. Key resistance has been defined at 4597.50, the Sep 1 high. A break is required to reinstate the recent bullish theme. A resumption of weakness would signal scope for a move towards the key support and bear trigger at 4397.75, the Aug 18 low. Clearance of this support would highlight a short-term reversal.

• Japan's NIKKEI closed higher by 308.61 pts or +0.95% at 32776.37 and the TOPIX ended 19.43 pts higher or +0.82% at 2379.91.
• Elsewhere, in China the SHANGHAI closed lower by 5.72 pts or -0.18% at 3137.059 and the HANG SENG ended 70.56 pts lower or -0.39% at 18025.89.
• Across Europe, Germany's DAX trades lower by 59.45 pts or -0.38% at 15741.72, FTSE 100 higher by 37.7 pts or +0.5% at 7534.48, CAC 40 down 11.61 pts or -0.16% at 7266.66 and Euro Stoxx 50 down 8.7 pts or -0.2% at 4245.63.
• Dow Jones mini down 55 pts or -0.16% at 34627, S&P 500 mini down 11.25 pts or -0.25% at 4479, NASDAQ mini down 45.75 pts or -0.3% at 15429.5.