Tuesday Move Lower Reinforces Bearish Conditions in E-Mini S&P

A bearish threat in Eurostoxx 50 futures remains present following last week’s sharp sell-off from 4513.00, the Jul 31 high. Yesterday’s move lower reinforces the current condition and price remains below both the 20- and 50-day EMAs. Furthermore, key support at 4331.00, the Jul 26 low, has been cleared. This further strengthens current conditions and opens 4220.00, the Jul 7 low and a reversal trigger. Initial firm resistance is 4424.00, Aug 2 high. Bearish conditions in the E-mini S&P contract remain intact and yesterday's low print reinforces this theme. Last week’s sell-off resulted in a break of support at the 20-day EMA following a recent failure at the top of the bull channel - this also highlights a bearish development and the risk of an extension lower near-term. Further downside would open 4459.62, the 50-day EMA. First key resistance is at 4634.50, the Jul 27 high.

• Japan's NIKKEI closed lower by 172.96 pts or -0.53% at 32204.33 and the TOPIX ended 9.16 pts lower or -0.4% at 2282.57.
• Elsewhere, in China the SHANGHAI closed lower by 16.133 pts or -0.49% at 3244.487 and the HANG SENG ended 61.86 pts higher or +0.32% at 19227.09.
• Across Europe, Germany's DAX trades higher by 194.82 pts or +1.24% at 15932.67, FTSE 100 higher by 60.18 pts or +0.8% at 7582.89, CAC 40 up 107.98 pts or +1.49% at 7363 and Euro Stoxx 50 up 62.37 pts or +1.45% at 4339.77.
• Dow Jones mini up 68 pts or +0.19% at 35456, S&P 500 mini up 14.5 pts or +0.32% at 4531.5, NASDAQ mini up 63.25 pts or +0.41% at 15406.