Global equity markets all moved lower in the overnight except the Russian, Hong Kong and Shanghai indexes. Chinese stocks continued to extend their downside move after being down 4 out 5 days last week, correcting -5.6% to +23.8% YTD. U.S. equity markets appear poised to continue to edge higher after better than expected earnings as well as a GDP reading of 3.2% (Q/Q) on Friday, with the S&P 500 and the Nasdaq closing at all-time highs. Breaking down GDP, inventories and net exports accounted for roughly 53% (largest since Q114) and real final sales (demand) decelerated to 1.4 q/q (slowest since Q415) with other indicators of growth such as consumer spending and business investment slowed. Tech bellwether Alphabet is set to report after the close with Fed and BoE meetings this week coupled with a slew of economic data including payrolls, PMI, U.S. and European inflation as well European GDP. In addition, US – China trade talk are set to resume amidst the continuation of earnings. The S&P 500 remains bullish trend but immediate term overbought with today’s range seen between 2880 – 2946, with uptrend channel support seen around 2924 with initial overhead resistance seen at 2950.
E-Mini S&P 500 Jun ’19 Daily Chart