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E-mini S&P has Capacity to Build Support Around the 2700 Level

Posted 02/22/2018 12:26PM CT | Jeff Yasak

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

e-mini_s&p_mar18_daily_chart

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Jeff Yasak

Senior Market Strategist
Jeff studied finance at the University of Wisconsin-Madison and at Loyola University. He left the corporate world in 1995 to pursue his dream of working in the financial markets. Jeff's trading career began as a clerk in the S&P 500 pit at the Chicago Mercantile Exchange. This is where he developed a great interest in the options market that led him to the retail futures business. Jeff spent a few years as a broker's assistant before managing clients of his own.
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