RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Indices

Stocks Pulling Back off Record Highs

Posted 10/19/2017 10:02AM CT | Jeff Yasak

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

Dec '17 Emini S&P Daily Chart

888-861-1656312-373-4966Series 3 Licensed

Jeff Yasak

Senior Market Strategist
Jeff studied finance at the University of Wisconsin-Madison and at Loyola University. He left the corporate world in 1995 to pursue his dream of working in the financial markets. Jeff's trading career began as a clerk in the S&P 500 pit at the Chicago Mercantile Exchange. This is where he developed a great interest in the options market that led him to the retail futures business. Jeff spent a few years as a broker's assistant before managing clients of his own.
Read More