S&P Up on Tentative Deal to Avoid Another Government Shutdown

February 12, 2019 9:45AM CST

Coming into the morning we see big gains across the board in indices.  The S&P 500 is up 19 at 2700, Dow futures is up 200 and the Nasdaq is up 50.  The reason for the big gains last night was congress agreed on a tentative deal to avoid another shutdown.  This was good timing because if no deal was struck, the government was set to shut down this Friday.   I don’t think this was a huge surprise because of all the backlash from the first shutdown and all the federal workers that were furloughed for a month.  I truly don’t think Trump could afford another repeat of that this time.   Another positive for stocks started yesterday where we saw a big move higher in the $ Yen which often tell traders that risk is back on.  Keeping with Japan, the BOJ announced they are cutting back on buying their bonds with duration of 10-20 year, the first time we have seen this since June of 2018.  Another positive for stocks which leads to a risk-on type of trade.  Looking at the S&P technically, bias is up where the market sees good support at the 100-day moving average which comes in at 2701 and change and resistance around 2751, which is the 200-day moving average.  The market is also waiting on Fed Powell speech which is 11:45 Am.   We also have two fed governors that speak after the market closes late this afternoon.   Traders should be looking to buy dips as the market is in a nice uptrend and should continue to watch headlines on any new developments on trade deals with China

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

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

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