STOXX 50 Off Lows As Early Moves Moderate A Little, Technical Picture Darkens

Euro STOXX 50 futures have recovered from session lows as early moves moderate a little. The contract is -30, while the cash equivalent is -0.9%.

• Early worry surrounding higher yields and China (negative leads from Chinese & HK stocks) has eased from extremes, with crude oil futures also off lows.
• Consumer discretionary names find themselves around the bottom of the sector performance table, owing to the aforementioned China worry.
• Utilities are the only sector in the green.
• Technically EURO STOXX 50 futures maintain a softer tone following last week’s move lower, and Monday's extension reinforces current conditions. Key support at 4,210.00, the Sep 8 low, has been breached. The clear break confirms a resumption of the downtrend that started late July and paves the way for a move towards 4,109.90, the 1.236 projection of the Aug 10 - 18 - 30 price swing. Key short-term resistance has been defined at 4,359.00, the Sep 15 high. Initial firm resistance is at 4,279.40 the 20-day EMA.