Equity

Equity Markets Leaning Bearish

Posted 05/03/2018 11:31AM CTJeff Yasak

The overnight global markets were mixed with Pacific Rim markets higher and the rest of the world generally weaker.  The performance in the equity markets after the mostly “dovish” FOMC result yesterday is suggestive of a market leaning bearish.  As indicated already, the E-mini S&P has been presented with a series of potentially major bullish headlines and yet prices have remained within striking distance of this week’s lows and well below the last month’s highs.  The larger picture shows that the E-mini S&P clearly remains within a three-month old downtrend pattern that doesn’t appear to have strong value until 2600.  Even though the Fed is off the back of the market for now, there is hope for an improvement in US/Chinese trade relations but a decline below this week’s low of 2625 and disappointing data can push the market lower.

E-mini S&P 500 Jun ’18 Daily Chart

E-mini S&P 500 Jun '18 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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