Uncertainties over the impact of the expected tariff announcement from the Trump administration Thursday is enough to keep sellers busy overnight. Foreign shares saw mixed results as the Shanghai composite and the Hang Sang indices posted minimal losses while the Japanese Nikkei saw a respectable gain.
The U.S. session will start out with a weekly initial jobless claims announcement that is expected to have a minimal down-tick from the previous 226,000 reading. The January FHFA housing price index is forecast to have a minimal uptick from December .3% reading.
Tariff uncertainties will likely reach their highest levels today as the market should look to settle after the release. However, fears of retaliation, concerns over the lack of advancement on the spending bill due Friday and ideas that the Fed will take a tough stance as the economy grows are all short-term headwinds for the market. The Fed hiked rates as expected and while they did not signal four rate hikes this year, they foretasted three in 2019 and another two in 2020. Resistance is around 2733 with support at 2703.
E-mini S&P 500 Jun ’18 Daily Chart