Bulls Still In Control of Equity MarketsPosted 08/08/2017 12:05PM CT |
Global equity markets were mixed overnight with the losers mostly concentrated in Europe. However, global stocks’ modest reaction to disappointing Chinese trade figures suggest that the markets aren’t on edge or overly vulnerable to negative headlines. However, the US markets have started the Tuesday trade off on a mixed track, and early corporate news headlines lean bearish. On the other hand, with the markets fresh off dovish comments from the Fed’s Bullard yesterday, and early US economic data this morning expected to be positive, the bull camp should generally retain control. Some traders might suggest the extended chain of new all-time highs in the Dow points to an overbought condition in need of some balancing. Earnings announcements today include CVS Health, Zoetis, and Cheniere energy before the Wall-Street opening. While September E-mini S&P has shown some slightly weaker action to start today, there should be enough residual economic optimism from recent US data flows to provide fairly solid close in support on the charts. Some might suggest the bull camp is set to get the best of both worlds. Yesterday the Fed’s Bullard came off dovish toward rate policy, and this morning’s US data looks to denote ongoing gradual recovery action. Support is at 2467 with closer in support at 2474.
Sep ’17 Emini S&P Daily Chart