Stock futures are trading sharply lower this morning continuing yesterday’s trend. Key economic news this morning was the factor. Personal income rose 0.3% against the expected 0.5% rise. The personal consumption expenditure, the Federal Reserve’s primary inflation measure, rose 0.4% vs. November and 5.8% year over year. Thursday’s losses in the major stock indexes held above Monday’s low which gave hope for week ending rally before the Fed numbers. Earlier this week Jerome Powell, Federal Reserve Chairman, strongly signaled a March increase on interest rates from their near-zero levels. The uncertainty of how quickly they will raise rates and how rapidly they will begin drawing down it’s $9 trillion balance sheet and tightening financial conditions left investors skittish. “Everything the Fed is doing at this point we think has just been priced in over the last few weeks. And that’s where a lot of the slide in the market has come from,” Morgan Stanley Managing Director Kathy Entwistle told Yahoo Finance Live on Thursday. “And the big question is, will we slide a little bit more? What’s happening? We’re looking at companies and their earnings … to determine whether or not we’re going to have a little bit more of a pullback in the market or not,” she added. “And that’s based on what they can do going forward, where their opportunities are. And we’ve been hearing a lot about inflation. If you think about a 7% inflation rate, that’s quite significant.” 

Support today is checking in at 424200 and 417500 with resistance showing 440300 and 44920.

E-mini S&P 500 Mar ’22 Daily Chart
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Jeff Yasak

Senior Market Strategist

Since leaving the corporate world in 1995, Jeff has established a name for himself as a trusted financial advisor and trading advocate—leveraging his studies in finance from the University of Wisconsin-Madison and Loyola University, 25+ years of experience, and a passion for the industry to guide both novice and experienced traders in pursuit of achieving their own financial reward. Jeff began his career as a clerk in the S&P 500 pit at the Chicago Mercantile Exchange—fostering a deep interest in the options market that eventually drove him into the retail futures sector where he spent several years as a broker’s assistant before taking on clients of his own. Operating at the intersection of strategy and success, Jeff seeks to establish meaningful relationships with clients—synthesizing financial data and offering timely insight that informs critical decision-making surrounding money management and trading activities. Well-versed in the futures, securities, equities, and indices markets, Jeff is uniquely positioned to direct his clients to success. With a carefully cultivated combination of experience and expertise, he is able to connect with clients to better understand their goals and offer sound financial guidance that delivers notable bottom-line results.

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