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Slow Erosion of S&P Prices as Expected as Fed Fear Remains in Place | RJO Futures

Posted 03/07/2017 10:36AM CT | Jeff Yasak

Global equity markets were mixed overnight with Pacific Rim stocks and the XETRA DAX managing to gain modestly and the rest of the world under minor pressure.  The Asian economic calendar started off with a February reading for Chinese foreign exchange reserves which surprised with an increase back above the $3 trillion mark and that probably helped Asian markets track positively overnight.  However, the European session started out with January German factory orders which fell by the biggest monthly amount since 2009, and that might have started out European and US stocks on a back foot. 

While the March E-mini S&P did not forge a lower low overnight, it has initially favored the lower half of the prior sessions range down move.  As mentioned already, the offering of a replacement for the affordable care act looks to spark another round of political sniping and perhaps a temporary drift away from pro-growth policy efforts.  It does appear as if stocks in general are reacting negatively to positive US data and that isn’t surprising considering the markets expanding expectations toward the rate hike next week

S&P E-mini Mar17 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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