U.S. equity markets followed European and Asian markets lower to start the week. This comes amidst increasing anxiety over global growth as Chinese economic data in the overnight posted the worst decline in import and export figures since 2016. Adding to the uncertainty is the upcoming Brexit vote tomorrow which is largely expected to fall flat. It will be important to monitor the scale of the vote with separate reports from the UK government stating that a defeat by less than 100 votes would be viewed in a positive light. Eurozone industrial production readings in the overnight fell by 3.3% month over month, enhancing growth concerns. Although the S&P 500 is up 3.6% on the year due to tentative advances in trade talk between the U.S. and China and dovish comments from Fed officials, the sentiment is weighed down by a partial government shutdown that is entering its fourth week. The market will be looking ahead to profits and earnings with a number of banks reporting this week. A hard line of resistance in the S&P 500 is seen at 2600 with the next upside target seen around 2609 and support around 2669.
E-Mini S&P 500 Mar ’19 Daily Chart