Global equity markets were weaker overnight in response to the answer from the US on China’s tariffs earlier in the week. The bull camp has to hope that something positive comes from the US payroll window to counter the rising trade uncertainty. Earnings announcements will include Greenbrier before the Ney York open. While we would suggest that downside reaction in the S&P this morning is somewhat impressive, the path of least resistance remains down due to what seems to have become a changeless cycle of threats. The stock markets don’t like uncertainty and the E-mini S&P in the early action today sits roughly 94 points above this week’s low and that leaves the market vulnerable to technical and fundamental selling.
Momentum is trending higher from mid-range, which should support a move higher if resistance levels are penetrated. The next area of resistance comes in around 2675 and 2690, while support comes in at 2650 and below is 2630.
E-mini S&P 500 Jun ’18 Daily Chart