Stocks Pulling Back off Record HighsPosted 10/19/2017 10:02AM CT |
Overnight global equity markets were weaker, with TOPIX being the exception. Political tensions in Spain, soft UK retail sales numbers, and negative psychological threat from the anniversary of the 1987 stock market crash all led to the downward push. With many stock index measures and stock issues sitting in new all-time highs, the mere psychological effect from the anniversary is having an effect. Fortunately for the bull camp, overnight Chinese economic data was generally upbeat, and corporate earnings have been supportive. However, there is the uncertainty in the direction of the Fed leadership on whether or not they will be hawkish or dovish on their interest rate decisions. Traders will be looking for news from the White House meeting with Fed Chair, Janet Yellen. With a number of negatives facing the market and early, rather noted, damage on the charts, the stock market crash anniversary is seemingly given some credibility. Initial support in the December S&P is seen at the early low of 2542.50, and then not until the 21-day moving average down at 2532.40. In order to turn the bias around, we might only require a rally back above 2551.00.
Dec ’17 Emini S&P Daily Chart