Recent Recovery in E-Mini S&P Results in Break of 20- and 50-Day EMAs

A bearish theme in Eurostoxx 50 futures remains present, however, for now a corrective cycle remains in play and the contract is trading higher. Resistance to watch is 4338.70, the 50-day EMA. A break of this average would highlight a stronger bullish theme and signal scope for a climb, potentially towards 4420.00, the Aug 10 high. Key support and the bear trigger has been defined at 4187.00, the Aug 8 low. The latest recovery in the E-mini S&P contract has resulted in a break of both the 20- and 50-day EMA values. This signals potential for a stronger short-term recovery. Attention is on resistance at 4493.98, the base of a bull channel that was breached last week. The channel is drawn from the Mar 13 low. Clearance of this level would open 4517.75, the Aug 15 high. Support to watch lies at 4399.50, yesterday’s low. A break would be bearish.

• Japan's NIKKEI closed higher by 276.95 pts or +0.87% at 32287.21 and the TOPIX ended 9.54 pts higher or +0.42% at 2286.59.
• Elsewhere, in China the SHANGHAI closed higher by 3.842 pts or +0.12% at 3082.244 and the HANG SENG ended 366.25 pts higher or +2.05% at 18212.17.
• Across Europe, Germany's DAX trades higher by 104.7 pts or +0.67% at 15833.03, FTSE 100 higher by 33.61 pts or +0.46% at 7354.23, CAC 40 up 57.25 pts or +0.79% at 7303.63 and Euro Stoxx 50 up 34.94 pts or +0.82% at 4301.51.
• Dow Jones mini up 10 pts or +0.03% at 34531, S&P 500 mini up 28.5 pts or +0.64% at 4475.25, NASDAQ mini up 189.5 pts or +1.25% at 15384.5.