Recent Losses Reinforce Bearish Trend in Eurostoxx 50 Futures

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 4142.30, the 20-day EMA. S&P e-minis maintain a softer tone and the contract is trading lower today. This week’s breach of support at 4235.50, the Oct 4 low and bear trigger, confirms a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. Moving average studies are in a bear-mode position too. The focus is on 4166.25, a Fibonacci projection. Initial firm resistance is at 4328.94, the 20-day EMA.

• Japan's NIKKEI closed lower by 668.14 pts or -2.14% at 30601.78 and the TOPIX ended 30.15 pts lower or -1.34% at 2224.25.
• Elsewhere, in China the SHANGHAI closed higher by 14.185 pts or +0.48% at 2988.299 and the HANG SENG ended 40.72 pts lower or -0.24% at 17044.61.
• Across Europe, Germany's DAX trades lower by 187.59 pts or -1.26% at 14703.74, FTSE 100 lower by 56.74 pts or -0.77% at 7357.1, CAC 40 down 67.72 pts or -0.98% at 6847.35 and Euro Stoxx 50 down 44.95 pts or -1.1% at 4027.47.
• Dow Jones mini down 120 pts or -0.36% at 33027, S&P 500 mini down 28.5 pts or -0.68% at 4181.25, NASDAQ mini down 152.25 pts or -1.05% at 14326.5.