The stock indices are posting mixed results in the early going this morning. Thus far, only the Nasdaq is in the green, while the Dow, S&P, and Russell are all lower. Tariff talks and the lack of any signs of resolution or compromise continue to hang over the market, but the indices have been relatively resilient. The Nasdaq and S&P continue to hold near the upper end of the upward channel we’ve been respecting since the 2016 lows. The Dow remains in the channel but doesn’t appear to be quite as strong as the other two.
News is virtually nonexistent today. We have a Baker-Hughes Rig Count this afternoon, but I don’t expect that to influence the directions of the indices in the slightest. President Trump has been tweeting his feelings about the Fed continuing to hike rates, and that seems to have rattled the currency markets. The dollar has sold off heavily since his initial statement condemning the strong dollar and the Feds roll in strengthening it. I’m not sure that they’ll suddenly reverse course on account of him expressing his opinion, but we’ll continue to monitor the situation.
E-mini S&P 500 Sep ’18 Daily Chart