RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Global equity markets were mostly weaker overnight, and we are seeing a slight pull back due to top heavy markets, however I believe stock markets are favoring the long side of the market long term. Overall, international economic data this morning is favorable as unemployment fell into separate regions in the latest monthly figures. Overnight changes in the S&P can be attributed to the corporate news slate mixed with Time Inc. revenue declining, and Wendy’s same-store sales beating expectations. Given bullish chart action over the past couple weeks, however, there is no denying that talk of policies such as deregulation, tax cuts and an increase in infrastructure are all business friendly news and therefore support a bullish overall market. On top of all this, Q4 earnings are coming in better than expected.

Traders should look at booking profits on stocks now during this slight correction in the market, and look to get long slight pull backs. One may profit from day trading by simply buying dips and selling into the rallies. I believe the market continues to digest political news since Donald Trump’s inauguration on January 20, however it is safe to say that his policies are business friendly and will make for a healthy stock market going into 2017. Uptrend channel support in the March E-Mini S&P today is seen at 2321.50 and to start today the even number 2350.00 level is initial support (see below). 

Emini Daily Chart

E-Mini NASDAQ (MAR): If traders look to the chart below, one can see the market rallied to a new contract high yesterday, however daily stochastics have risen into overbought territory much like the E-Mini S&P above. The market’s close above the 9-day moving average suggests the short-term trend remains positive, and the market has a bullish tilt coming into today’s trade with the close above the second swing resistance. The near-term upside objective is at 5344.12.

Emini Daily Chart

Manon Lasserre