Global equity markets were mixed in the overnight, however, Asian markets fell sharply with Hong Kong and Japanese stocks down 2.1% and 1.5% respectively. Although most S&P 500 companies have observed positive earnings, a decline of Apple shares weighed down on equity markets on Friday, amid a recent rebound from the October lows. Tomorrow’s midterm elections are expected to provide direction as to the outlook on U.S. trade and fiscal policy. The Federal Reserve is likely going to leave rates unchanged following the conclusion of its policy meeting on Thursday with the focus on the impending language surrounding further rate hikes. Uncertainty still remains with China as President Trump stated he had a “very good conversation” with President Xi while White House economic advisor Larry Kudlow stated there was no deal imminent. Investors will also be looking at oil prices as sanctions on Iran take effect although reports on Friday stated that waivers may be granted to eight countries to allow them to continue importing Iranian oil. Near term upside target in the S&P 500 is seen around 2757 with support around 2690.
E-Mini S&P 500 Dec ’18 Daily Chart