E-mini S&P has Capacity to Build Support Around the 2700 LevelPosted 02/22/2018 12:26PM CT |
Global equity markets overnight were weaker with a few exceptions. International markets overnight appeared to be undermined as a result of the rising interest rate theme, but also because of somewhat disappointing corporate earning flow from Europe. With a fresh downside breakout on the charts, one would think the bears continue to control. However, the markets initially rejected that probe down and commentary from the Fed’s Bullard this morning should ultimately provide some countervailing of fear from the rising rate threat. On the other hand, strong US economic data could be bad for stock prices.
While the charts in the E-mini S&P remain classically negative the capacity to build support around the 2700 level could be seen as a psychological victory as the session progresses today. In fact, a number of credible voices are suggesting that conditions are favorable and that the ultimate reading from the Fed into the end of January should favor the bull track and not the bear track. Critical support comes in at 2682.
E-mini S&P 500 Mar ’18 Daily Chart