The Stock Market has recovered very nicely since last Thursday after President Trump imposed tariffs on both steel and aluminum.  The S&P has rallied approximately 80 dollars off the low in the March contract.  The fears have seemed to subside for the time being and now markets are starting to focus on the monthly payrolls number which comes out on Friday and the street is looking for another robust gain of 200k new jobs.  Traders should be watching that number for direction of both stock and bond markets.  In my opinion, the payroll number is important, but short-term traders should be more focused on the wage number as another strong reading will most likely send yield soaring with the 10-year shooting above 3%.  The wage number is closely watched by all Fed officials and another strong reading will surely bring out all Fed hawks and could be very negative for both stocks and bonds immediately. 

Let’s look at the technicals for the March S&P contract.  We have seen a nice bottom form around the 2650-60 level that held after Trump announced new tariffs.  First level of resistance I see is 2738, which is the 50-day moving and I would expect the market to stall around there if we reach the level today.   Today’s high is 2734.50.  If you would like to talk about the S&P or any other markets, please call me at 800 826-2270 or via email at gperlin@rjofutures.com. 

E-mini S&P 500 Mar ”18 Daily Chart