The bulls remain in control early on as all of the S&P and Dow futures have made contract highs. Global equity markets were mixed overnight with Asian markets generally higher, with some weakness seen in Australia and in the UK. It feels that the markets continue to wait on tax reform out of Washington. The problem that investors are seeing is that verbiage out of Washington continues to come at a standstill with no new concrete info being seen. The stocks continue to climb the wall of worry, with indices continuing to go north regardless of economic news. Yesterday, we did get a very good manufacturing number where we saw a thirteen year high. This is viewed as positive for the economy, and should further help the fed to continue on the path of gradual rate increases and to further unwind there balance sheet as early as next month. Some noteworthy events this week come on Friday when we have the monthly employment report with estimates coming in at around 98k. Much lower than six month average. Looking at the S&P on a technical basis, the market has rallied to a new high, but daily stochastics have risen into overbought territory which will tend to support reversal action if it occurs. The market’s short term trend is positive on the close above the 9-day moving average. My pick for a near term high is 2534.75. First resistance is around 2531 and more at 2534.45, while support lies today at 2521 and 2516.
Oct ’17 E-mini S&P 500 Daily Chart