Bulls are saved by the NASDAQ, but watch for end of month action in S&P | RJO Futures

May 31, 2017 11:15AM CDT

Global equity markets were mixed again overnight with Pacific Rim markets moving generally positively, but European markets turning out mixed. Despite generally favorable international economic report flow, overnight equity prices appear to be unimpressed and poised to drift lower. Clearly favorable economic news from China and the Euro zone has been discounted in favor of ongoing geopolitical concerns, which remain glued to the eroding support for the British Prime Minister and the declining hopes of pro-growth policies from the Trump administration.  Another issue that has apparently come down in favor of the bear camp is a gradual rise in June interest rate hike expectations. As indicated already, the path of least resistance looks to be pointing downward, but declines are likely to be slow and measured. Downtrend channel resistance in the June E-mini S&P today is seen at 2416 and initial support in the market is seen at 2408. Therefore, the initial range of trade today looks to be tight and doesn’t appear as if it will take much of a move in either direction, which should result in follow-through technical buying/technical selling.  


Jun '17 Emini S&P Daily Chart

Emini Daily Chart

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