Global equity markets were weaker overnight due to ongoing concerns with Korea, fears of political issues in the UK, and turmoil in France’s elections. While US equities saw some favorable earnings reports yesterday, the market continues to be pounded by a series of geopolitical uncertainties. The bull camp has to hope that US scheduled data will provide some type of positive macroeconomic backstop against negative international headline flow.
The market has shown some potential to bounce off last week’s lows, and the June E-mini S&P did forge a minimal higher high this morning. Even so, we have to leave the edge with the bear camp given international headline flow and the market’s muted response to some favorable corporate earnings results this week. However, the June e-mini S&P did manage to temporarily rise above a three week old downtrend channel resistance line at 234550, but given today’s geopolitical and economic set up we can’t rule out a decline below a close in pivot of 233325. More significant support in the June E-mini S&P is seen down at 232400.