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Equity Bears Still Holding an Edge

Posted 02/08/2018 1:51PM CT | Jeff Yasak

Global equity markets were mostly weaker with Japan and Russia being the exceptions.  The normal technical pressures on the equity markets were also fueled by comments from Robert Kaplan, the President of the Dallas Fed, who stated that they should continue to remove stimulus moving forward.  It is also likely that global equities are under some liquidation pressure because of the possibility of a US debt ceiling/government shutdown threat even though there are signs of negotiation and progress on that front.  The Dow Jones industrial average traded 500 points lower after opening just above the flat line. The 30-stock index also approached 23,778.74, its low for the week. It looks as if the aggressive volatility is set to extend and we can’t rule out at least a quick peek back below 2600 because of the looming uncertainty off the US debt ceiling battle.  In fact, even a recovery bounce back above 2700 means little in these current market conditions.   Support comes in at 2649 with resistance at 2705.

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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