Trend Remains Up and More All-Time Highs Ahead in the S&P

June 9, 2017 9:31AM CDT

Global equity markets were mostly higher overnight with the exception of the Hang Seng, as the markets were not undermined by the surprise failure to get a “government” in the UK. In retrospect, seeing equity prices manage to forge a sideways consolidation through this week’s geopolitical and economic flashpoints is a testament to the bull’s resolve and perhaps the bull’s enduring capacity. Furthermore, seeing US stocks build consolidation low support in the face of ongoing retail sector fear and noted weakened in oil patch shares suggests the overall bull trend might continue. In fact, some market measures this morning appear to be poised to breakout to the upside again and that clearly relegates the political stories to a back burner. Earnings announcements will include Straight Path Communications before the Wall Street opening.

S&P: As suggested already the September E-mini S&P sits just below an upside breakout point on its charts as if the market has successfully discounted the political incidents this week. Perhaps the bull is cheered by somewhat favorable Chinese economic news items this week and perhaps the markets are sensing recent events and data will leave the Fed on hold next week. Another issue providing support to the bull camp is a series of buyouts announced or expected to be pursued over the last 24 hours. Critical consolidation support in the September E-mini S&P this morning is down at 2421.75 but a more important and closer pivot point is seen at 2429.05. That being said I favor the long side and would not be surprised to see another all-time high today.


Sep '17 Emini S&P Daily Chart

Sep '17 Emini S&P Daily Chart

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