Short Term Gains in E-Mini S&P Considered Corrective

A bearish condition in Eurostoxx 50 futures remains intact despite this week’s gains. Last Thursday’s sharp sell-off reinforces a bearish theme. The move lower signals the end of the recent corrective bounce between Aug 18 - 24. Key support and the bear trigger lies at 4187.00, the Aug 8 low. A break of this level would confirm a resumption of the downtrend. Resistance to watch is 4330.50, the 50-day EMA. A clear break would signal a short-term reversal. A sharp sell-off on Aug 24 in the E-mini S&P contract reinforces a bearish theme and signals the end of the Aug 18 - 24 corrective bounce. Short-term gains are considered corrective and attention is on support at 4350.00, the Aug 18 low and bear trigger. A break would confirm a resumption of the current bear cycle. Resistance to watch is 4556.73 - the base of a bull channel, drawn from the Mar 13 low that was breached on Aug 16.

• Japan's NIKKEI closed higher by 56.98 pts or +0.18% at 32226.97 and the TOPIX ended 3.6 pts higher or +0.16% at 2303.41.
• Elsewhere, in China the SHANGHAI closed higher by 37.251 pts or +1.2% at 3135.887 and the HANG SENG ended 353.29 pts higher or +1.95% at 18484.03.
• Across Europe, Germany's DAX trades higher by 53.47 pts or +0.34% at 15845.15, FTSE 100 higher by 99.06 pts or +1.35% at 7437.12, CAC 40 up 18.37 pts or +0.25% at 7343.08 and Euro Stoxx 50 up 10.15 pts or +0.24% at 4303.84.
• Dow Jones mini up 9 pts or +0.03% at 34603, S&P 500 mini up 1.5 pts or +0.03% at 4443.75, NASDAQ mini up 2.25 pts or +0.01% at 15095.75.