Global markets continue to be weighed down

October 17, 2016 6:17AM CDT

Sluggish risk sentiment early this week have caused slowing in the markets, although major Japanese stock indices were able to finish in positive territory as they benefited from decent industrial production numbers. Euro-zone inflation numbers were in line with their previous reading and with market forecasts, but ongoing Brexit anxiety continues to weigh on most major European equity markets. Wild action at the end of last week in both directions would seem to forecast a key trend decision ahead. We would note that the S&P forged a big range downward washout and recovery back above the mid-point of the session on October 13 th , but it was unable to hold a key pivot point in the following sessions and that leave the bear camp with a slight edge. For the near term, we see a bull/bear line at 212250 in the December E-Mini S&P. We also see a downtrend channel resistance line up at 213750 today. Therefore, there might be little in the way of solid support until the December reached down to even number consolidation support of 2100. In fact, the COT report as of October 11 th for the S&P showed the non-commercial and non-reportable combined traders held a net long position of 44,783 contracts, and therefore the market doesn’t appear to be oversold yet.

Emini Daily

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