Equity

A Top Heavy Equity Market

Posted 01/25/2018 1:18PM CTJeff Yasak

Asian shares were weaker, and were led by losses in the Nikkei due to the recent strength of the yen.  The GfK survey on German consumer confidence and the IFO survey on German business climate both came in better than forecasted.  European shares are having mixed results early with the German DAX under mild pressure, while the Italian MIB and Spanish IBEX 35 are posting moderate gains.  A highlight for global markets will come with the results of the European Central Bank’s latest monetary policy meeting which is forecast to have no change to either rates or policy.  The U.S. session will start out with a weekly reading on initial jobless claims that is expected to have moderate increase from previous 220,000 reading.

With a wide range outside day Wednesday, the market feels a bit top heavy and extremely overbought.  In fact, March E-mini S&P has closed higher in 14 of last 16 sessions.  Strong global growth prospects and strength in emerging markets are factors which helped support.  Traders seem to be growing more concerned with protectionist US policy could be a factor to spark a correction.  The trend remains up and bull camp has not been easily discouraged by trade war concerns, North Korea issues or even political wrangling in the US.  Support comes in at 2830 with resistance at 2876.

E-mini S&P 500 Index Daily Chart

e-mini_s&p_mar18_daily_chart

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Jeff Yasak

Senior Market Strategist
Since leaving the corporate world in 1995, Jeff has established a name for himself as a trusted financial advisor and trading advocate—leveraging his studies in finance from the University of Wisconsin-Madison and Loyola University, 25+ years of experience, and a passion for the industry to guide both novice and experienced traders in pursuit of achieving their own financial reward. Jeff began his career as a clerk in the S&P 500 pit at the Chicago Mercantile Exchange—fostering a deep interest in the options market that eventually drove him into the retail futures sector where he spent several years as a broker’s assistant before taking on clients of his own. Operating at the intersection of strategy and success, Jeff seeks to establish meaningful relationships with clients—synthesizing financial data and offering timely insight that informs critical decision-making surrounding money management and trading activities. Well-versed in the futures, securities, equities, and indices markets, Jeff is uniquely positioned to direct his clients to success. With a carefully cultivated combination of experience and expertise, he is able to connect with clients to better understand their goals and offer sound financial guidance that delivers notable bottom-line results.
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