Recent Price Action in E-Mini S&P Reinforces Bearish Theme

Eurostoxx 50 futures gains stalled at 4513.00 on Monday, and the contract has traded sharply lower. For now, the pullback is considered corrective. However, the move lower has resulted in a break of both the 20- and 50-day EMAs and this highlights a stronger bearish threat. The break lower has exposed 4331.00, the Jul 26 low and a key support. Key resistance and the bull trigger is at 4513.00. First resistance is at 4424.00, the Aug 2 high. The E-mini S&P contract continues to trade below 4634.50, the Jul 27 high. Yesterday’s move lower reinforces a bearish theme and has resulted in a break of support around the 20-day EMA. The recent failure at the top of the bull channel and the break of the 20-day average, highlights a developing bearish threat. A continuation lower would open 4449.29, the 50-day EMA. First key resistance is at 4634.50, the Jul 27 high.

• Japan's NIKKEI closed lower by 548.41 pts or -1.68% at 32159.28 and the TOPIX ended 33.41 pts lower or -1.45% at 2268.35.
• Elsewhere, in China the SHANGHAI closed higher by 18.773 pts or +0.58% at 3280.463 and the HANG SENG ended 96.51 pts lower or -0.49% at 19420.87.
• Across Europe, Germany's DAX trades lower by 160.08 pts or -1% at 15857.99, FTSE 100 lower by 107.94 pts or -1.43% at 7453.12, CAC 40 down 73.26 pts or -1% at 7239.58 and Euro Stoxx 50 down 41.71 pts or -0.96% at 4294.79.
• Dow Jones mini down 136 pts or -0.38% at 35267, S&P 500 mini down 21.5 pts or -0.47% at 4515.5, NASDAQ mini down 99.75 pts or -0.64% at 15373.75.