Bulls Still in Control of Equity Market

August 9, 2018 11:25AM CDT

The overnight global markets were mostly weaker with the Shanghai and Australian markets which managed impressive gains being the exceptions.  The concerns overnight centered on sanctions that will now weigh on the Russian economy and the sharp declines in the Turkish and Russian currencies.  This is creating some fear of a potential financial crisis developing in Western Europe.  From the US/China trade front, it also appears as if the war is escalating daily with the Chinese media outlets reiterating that they have many weapons to utilize against the US.

While the geopolitical events continue to increase, the E-mini Thursday morning appears to be heading for a potential move to all-time highs.  While positive earnings seem to be part of the bull case, it is possible that the trade thinks the tariff situation will ultimately be solved or will not be a definitive impact.  Resistance comes in at 286000 and 286600 while support comes in at 285050 and 284700

E-mini S&P 500 Sep ’18 Daily Chart

E-mini S&P 500 Sep ’18 Daily Chart

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