The bulls control in S&P following range up action to start today | RJO Futures

February 7, 2017 10:20AM CST

Global equity markets were mixed again with Asian stocks lower while European and US stocks were showing early gains.  It is a little surprising to see US and European stocks tracking higher early given ongoing political uncertainties in both areas.  Perhaps the European market is drafting some support from favorable earnings at one of Europe's largest banking concerns.  It is also possible that US stocks are expecting a subtle shift back toward tax reform, and infrastructure spending from the new president as the political hot point issues wain slightly due to legal wrangling.  We have to give the bull camp an early nod with prices sitting right on last week’s high.  In fact an early move above 2294.25 could set the stage for a quick retest of 2300.  Uptrend channel support in the March E-mini S&P is seen right on the early low at 228250 with initial resistance seen off a quasi-double high of 2294.  More significant support is seen down at a series of closes around 2274.75.  The path of least resistance looks to be pointing up with a couple measures already forging new highs for the move.  While there doesn’t appear to be widespread hope of a shift back to pro-growth debate from the US political front seeing a slight shift back toward that type of thinking could add significantly to the pre-existing bullish tilt.

 

Emini Daily Chart

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