The bulls are in control in S&P, but retail sales readings are paramount

January 13, 2017 8:22AM CST

Global equity markets were mostly higher, but weakness was seen in some Pacific Rim markets, perhaps because of disappointing Chinese trade figures.  Economic data overnight was mostly positive from outside of China, but the Chinese news isn’t all bad, because the import of some base/industrial commodities reached record levels in 2016 and that might point to an economy getting back on its feet.  With positive reading expected from US retail sales figures today, and more balanced technical condition in place, (following the washout and recovery yesterday) we have to give the bull camp an edge today.  Earnings announcement will include JP Morgan, Wells Fargo, Bank of America, BlackRock and PNC Financial before the Wall Street opening.  The E-mini S&P forged a big range down washout and recovery in the prior trading session, which would seem to point to the prospect of a low.  While the Chinese trades figures overnight were a little discouraging, the negative influence of the Trump press conference is drifting into the background. The trade might be able to put on a more optimistic face in the event that today’s scheduled data manages to meet expectations of a sweep of positive results.

The S&P is bullish, and penetration into new highs suggests an emerging drive to 228800+.  Near term trade may yet ease for sideways corrections along 226100, but sideways action favors a staging level for rallies.  A close under 224650 is needed to trigger near term selloffs to press for 221350, testing a larger top/downturn.  Today’s resistance comes in at 227300 and 228800, with support coming in at 225700 and 224650.  The upside target for today is at 228800 with the market needing a close under 224650 to negate the current up-trend.

Emini Daily

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