Recent Move Lower in E-Mini S&P Confirms Resumption of Bear Leg

Eurostoxx 50 futures trend conditions remain bearish and the latest bounce has been corrective. The contract has traded below 4128.00, the Sep 27 low. This confirms a resumption of the downtrend that started late July and signals scope for a move towards 4055.40, a Fibonacci retracement point. Initial firm resistance is at 4226.20, the 20-day EMA. A break of this average would signal a possible short-term base. A bear cycle in S&P E-minis remains in play. The contract traded lower yesterday, confirming a resumption of the bear leg and maintaining the price sequence of lower lows and lower highs. This signals scope for weakness towards 4242.15, a Fibonacci retracement point. A break of this level would open 4194.75, the May 24 low. Pivot resistance is 4453.89, the 50-day EMA. Ahead of the 50-day average is resistance at 4401.10, the 20-day EMA.

• Japan's NIKKEI closed lower by 711.06 pts or -2.28% at 30526.88 and the TOPIX ended 56.58 pts lower or -2.49% at 2218.89.
• Across Europe, Germany's DAX trades lower by 42.46 pts or -0.28% at 15043.62, FTSE 100 higher by 5.13 pts or +0.07% at 7475.32, CAC 40 down 1.39 pts or -0.02% at 6995.66 and Euro Stoxx 50 down 2.43 pts or -0.06% at 4093.16.
• Dow Jones mini up 9 pts or +0.03% at 33208, S&P 500 mini down 3.25 pts or -0.08% at 4261, NASDAQ mini down 32.25 pts or -0.22% at 14679.25.