Recent Move Lower Reinforces Bearish Conditions in Eurostoxx 50 Futures

Eurostoxx 50 futures maintain a softer tone following last week’s move lower, and Monday's extension 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 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 the price traded lower Monday. Last Thursday’s sell-off resulted in a break of support at 4397.75, the Aug 18 low. This breach reinforces bearish conditions and signals scope for a continuation lower. Sights are on 4318.00 next, the Jun 2 low. Initial firm resistance is 4492.05, the 50-day EMA. Short-term gains would be considered corrective.

• Japan's NIKKEI closed lower by 363.57 pts or -1.11% at 32315.05 and the TOPIX ended 13.56 pts lower or -0.57% at 2371.94.
• Elsewhere, in China the SHANGHAI closed lower by 13.334 pts or -0.43% at 3102.273 and the HANG SENG ended 262.39 pts lower or -1.48% at 17466.9.
• Across Europe, Germany's DAX trades lower by 50.07 pts or -0.33% at 15355.33, FTSE 100 higher by 14.63 pts or +0.19% at 7638.63, CAC 40 down 39.41 pts or -0.55% at 7084.47 and Euro Stoxx 50 down 22.34 pts or -0.54% at 4145.03.
• Dow Jones mini down 122 pts or -0.36% at 34149, S&P 500 mini down 19 pts or -0.43% at 4359.75, NASDAQ mini down 77 pts or -0.52% at 14857.5.