U.S. equity markets followed global equity markets lower Monday as the market awaits a slew of news events this week. A vote on UK’s exit from the European Union is scheduled for Tuesday as Theresa May’s initial proposition was firmly rejected earlier in the month. The next round of trade negotiations between the U.S. and China are set to resume this week with the Chinese Vice Premier Liu He set to visit Washington. This comes amid continuing evidence of slowing in China with industrial earnings data coming in softer in the overnight. The Fed will release its policy statement at the conclusion of its meeting on Wednesday with no changes expected and the focus on Fed Chairman Powell’s conference. This will be coupled with economic data earlier in the day with GDP and January U.S. payrolls set to be released. All of this comes during the busiest week of earnings season with technology giants Apple, Amazon, Microsoft, and Facebook set to report with ongoing concerns of economic slowing as evidenced by a miss in earnings by Caterpillar this morning. Despite the risk off sentiment, a pivot point in the March E-Mini S&P 500 is seen 2636.25 with the next level of support seen around 2600.
E-Mini S&P 500 Mar ’19 Daily Chart