S&P Continues to Reach New HighsPosted 08/21/2018 11:24AM CT |
In the early trading this morning, the S&P is trading at 2867 up $8.50, The Dow is up 69 at 25830 and the Nasdaq up 32 at 7419.00. This comes after we saw big gains yesterday across all indices. One of the reasons we are extending gains this morning is that President Trump is being critical of Fed Chairman Powell on the continued rate increases that fed is doing. Trump is critical saying that we shouldn’t be raising anymore. So, the result we have seen in the markets is that the dollar has been selling off for the past few days, which in turn is giving the market a dovish tone. The big number is the S&P is near the all-time high of 2878.50, which is only 10 points away from the current price. Markets will be focused on two major economic releases this week. Tomorrow we have the FOMC minutes at 1:00 central and Friday is the big one where Powell speaks at Jackson Hole, Wyoming and the main topic of discussion will be interest rates. So, traders should be on guard for any more tweets out of Trump today directed towards Powell which could lend another boost to an already inflated stock market. I would watch near the old high of 2787.50 with a 12$ stop and look to take profit near 2730.
E-mini S&P 500 Sep ’18 Daily Chart