RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Indices

Equity Market Faces Headwinds

Posted 05/17/2018 10:53AM CT | Jeff Yasak

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

E-mini S&P 500 Jun '18 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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