Equity

Trade War Fears Persist; S&P Needs Less Fear or More Down to Come

Posted 06/28/2018 11:32AM CTJeff Yasak

The Shanghai Composite and South Korean KOSPI indices led the Asian stock markets which were mostly lower.  The Chinese Yuan recorded a 7-month low Vs. the dollar and retail sales numbers in Japan were lower than anticipated. The North American session will start with a weekly reading for initial jobless claims that are expected to see a minimal weekly uptick from the prior 1.723 million reading.  The last reading of the first quarter GDP is forecasted to hold steady with a previous 2.2 annualized rate.

There is hope that the administration is making progress on the China trade issue, but the market does not like the uncertainty and disagreements within Trump’s camp on the issue and this uncertainty is a crucial bearish influence in the short term for the S&P.  In addition, emerging market concerns continue as higher energy and consumer good prices due to increased global tariffs are factors which are helping send investors to the sidelines.  Resistance is around 2729 and 2762 with support coming in at 2682.

E-mini S&P 500 Sep ’18 Daily Chart

E-mini S&P 500 Sep '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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