Recent Recovery in E-Mini S&P Undermines Bearish Theme

Eurostoxx 50 futures traded sharply higher yesterday and price is firmer today. These strong gains threaten the recent bearish theme and signal a possible short-term reversal with a key support defined at 4210.00, the Sep 8 low. A continuation higher would expose resistance at 4388.00, the Aug 30 high where a break would strengthen a bullish case. For bears, a break of 4210.00, would resume the recent downtrend. A bear cycle in the E-mini S&P contract remains in play, however, the current recovery undermines this bearish theme. A continuation higher would open 4597.50, the Sep 1 high, where a break would strengthen a bullish case. This would open 4617.40, a Fibonacci retracement. Key short-term support has been defined at 4483.25, the Sep 7 low. A break would be seen as a bearish development.

• Japan's NIKKEI closed higher by 364.99 pts or +1.1% at 33533.09 and the TOPIX ended 22.81 pts higher or +0.95% at 2428.38.
• Elsewhere, in China the SHANGHAI closed lower by 8.808 pts or -0.28% at 3117.743 and the HANG SENG ended 134.97 pts higher or +0.75% at 18182.89.
• Across Europe, Germany's DAX trades higher by 157.38 pts or +1% at 15962.76, FTSE 100 higher by 52.79 pts or +0.69% at 7725.65, CAC 40 up 99.55 pts or +1.36% at 7408.22 and Euro Stoxx 50 up 38.94 pts or +0.91% at 4318.69.
• Dow Jones mini up 47 pts or +0.13% at 34971, S&P 500 mini up 4 pts or +0.09% at 4510, NASDAQ mini down 3 pts or -0.02% at 15475.