Equity Market Faces HeadwindsPosted 05/17/2018 10:53AM CT |
Without help from a breakthrough in trade deals, the equity market may need to take in more selling in the short-term. Asian stock markets posted mixed results, as a modest gain for the Nikkei was balanced against declines in the Shanghai composite. Earnings announcements will include Walmart before the market opening, while Applied Materials will report after the close.
The market seems to have plenty of headwinds which might slow investor sentiment and spark some movement to the sidelines. Higher interest rates, higher energy prices and notions that the China/US trade issues are a long way from resolution are seen as potential negative forces. Higher interest rates to consumers, plus the jump in gas prices are factors which could hurt personal disposable income. Resistance comes in at 2734 with support at 2710.
E-mini S&P 500 Jun ’18 Daily Chart