Equity

E-mini S&P has Capacity to Build Support Around the 2700 Level

Posted 02/22/2018 12:26PM CTJeff Yasak

Global equity markets overnight were weaker with a few exceptions.  International markets overnight appeared to be undermined as a result of the rising interest rate theme, but also because of somewhat disappointing corporate earning flow from Europe.  With a fresh downside breakout on the charts, one would think the bears continue to control.  However, the markets initially rejected that probe down and commentary from the Fed’s Bullard this morning should ultimately provide some countervailing of fear from the rising rate threat.  On the other hand, strong US economic data could be bad for stock prices. 

While the charts in the E-mini S&P remain classically negative the capacity to build support around the 2700 level could be seen as a psychological victory as the session progresses today.  In fact, a number of credible voices are suggesting that conditions are favorable and that the ultimate reading from the Fed into the end of January should favor the bull track and not the bear track.  Critical support comes in at 2682.

E-mini S&P 500 Mar ’18 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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