Stocks Under Pressure to Start the Week

December 17, 2018 12:00PM CST

U.S. equity markets are under pressure to start the week ahead of the conclusion of the Federal Reserve’s monetary policy meeting on Wednesday with short-term rates expected to raise and attention on the Fed’s outlook for next year. These expectations come amidst weaker economic data and lower oil prices with remarks in November by Fed Chairman Powell that rates appeared to be ‘just below the so called neutral level.’ New initiatives by the Chinese government may be introduced later this week to stimulate their economy following a recent injection of money by their central bank. A slew of US economic data is set to be released at the end of the week including durable goods as well as third quarter gross domestic product with a partial government shutdown looming if Congress and President Trump cannot agree on a budget plan. With an increase and a relatively significant long position in the S&P, this could preempt further selling prior to the Fed announcement. Support for the E-Mini S&P 500 is seen at 2558.50 with resistance at 2632.50 with the next upside target seen around 2668

E-Mini S&P 500 Mar '19 Daily Chart

E-Mini S&P 500 Mar '19 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.