EQUITIES: Eurostoxx 50 Futures Consolidate Close to Recent Highs

The trend condition in Eurostoxx 50 futures is unchanged, the direction remains up and the recent consolidation appears to be a flag formation - a bullish continuation pattern. The recent breach of key resistance at 5525.00, the Aug 22 high, confirmed a resumption of the uptrend. Sights are on the 5700.00 handle next, with potential for a test of 5727.18 further out, a Fibonacci projection. Initial firm support lies at 5550.36, the 20-day EMA. The trend condition in S&P E-Minis is unchanged and the direction remains up. Fresh cycle highs this week confirm a continuation of the uptrend and maintain the positive price sequence of higher highs and higher lows. The contract is holding on to its latest gains and sights are on 6812.29 and 6819.25, Fibonacci projection points. Initial support to watch is at the 20-day EMA, at 6716.75. A clear break of it would signal scope for a pullback.

• Japan's NIKKEI closed lower by 491.64 pts or -1.01% at 48088.8 and the TOPIX ended 60.18 pts lower or -1.85% at 3197.59.
• Elsewhere, in China the SHANGHAI closed lower by 36.944 pts or -0.94% at 3897.028 and the HANG SENG ended 462.27 pts lower or -1.73% at 26290.32.
• Across Europe, Germany's DAX trades higher by 18.58 pts or +0.08% at 24624.52, FTSE 100 lower by 11.84 pts or -0.12% at 9496.08, CAC 40 up 20.13 pts or +0.25% at 8061.49 and Euro Stoxx 50 up 6.2 pts or +0.11% at 5631.76.
• Dow Jones mini up 53 pts or +0.11% at 46646, S&P 500 mini up 9.5 pts or +0.14% at 6789.25, NASDAQ mini up 49.5 pts or +0.2% at 25339.25.