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

Eurostoxx 50 futures trend conditions remain bearish and the latest bounce is considered corrective. Last week’s extension lower reinforces the current trend condition and key support at 4210.00, the Sep 8 low, has been breached. The clear break confirmed a resumption of the downtrend that started late July and opens 4109.90, a Fibonacci projection. Initial firm resistance is at 4245.60, the 20-day EMA. A bear cycle in S&P E-minis remains in play and short-term gains are considered corrective. The recent break of support at 4397.75, the Aug 18 low, reinforced bearish conditions and signals scope for a continuation lower. Sights are on 4242.15, a Fibonacci retracement point. Initial firm resistance is 4467.07, the 50-day EMA. Ahead of the 50-day average is resistance at 4399.00, the Sep 22 high, and 4425.05, the 20-day EMA.

• Japan's NIKKEI closed lower by 97.74 pts or -0.31% at 31759.88 and the TOPIX ended 8.95 pts lower or -0.39% at 2314.44.
• Across Europe, Germany's DAX trades higher by 47.89 pts or +0.31% at 15434.48, FTSE 100 higher by 5.52 pts or +0.07% at 7613.35, CAC 40 up 30.08 pts or +0.42% at 7163.92 and Euro Stoxx 50 up 15.89 pts or +0.38% at 4189.82.
• Dow Jones mini up 168 pts or +0.5% at 33895, S&P 500 mini up 25.75 pts or +0.6% at 4351.5, NASDAQ mini up 120.25 pts or +0.81% at 14987.5.