Equities Looking for Support

May 1, 2018 12:55PM CDT

The E-mini S&P closed at 2647.25 on Monday to start the week down 24.25. With the market back below the 21-day moving average, combined with RSI trending lower, trading down through support today should accelerate the short-term trend to the downside. Support comes in around 2630.00 and 2594.50 with resistance at 2674.75 and 2714.25. Bulls are looking for a close above 2659.50 to reverse the trend to the upside and test resistance levels.  Markets are weakened on increased tension caused by Israel charging that Iran violated an agreement by having a nuclear weapons program, which could cause the US to pull out of the 2015 nuclear deal. We also see a softening of US trade stance with key allies as metal tariffs from the Trump administration were delayed on Canada, Mexico, and the EU. Despite those positives, the market has started lower again today, possibly factoring in expectations of soft iPhone sales from Apple who reports after the close. Looking ahead to tomorrow, there is a FOMC meeting scheduled with a consensus of no change in rates and a feeling that first quarter weakness will be understated with a continued outlook on growth. Look for the market to continue lower down to support with choppy trade as it tries to form a push to the upside.

E-mini S&P 500 Jun '18 Daily Chart

E-mini S&P 500 Jun '18 Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.