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The Fundamental and Technical Edge in Equities

Posted 06/14/2018 11:46AM CT | Jeff Yasak

Overnight Thursday, global equity markets were weaker in the wake of the US FED interest rate hike on Wednesday.  However, China posted economic data that grew at a slower pace than anticipated, and the Chinese central bank held steady on interest rates even with the US move to raise rates.

With a fresh four-day low early Thursday, the Fed news from the previous session continues to weigh on prices.  However, rumors of additional Us tariffs on Chinese goods and the inability to hold above 2774 in the September E-mini gives the bear camp a fundamental and technical edge today.  Fortunately for the bulls, there does not appear to be a high level of concern in place but the net spec and fund long in the E-mini futures possibly recorded another new all-time record high reading and that leaves the market susceptible from a technical perspective.  Resistance comes in at 2788 and 2800 with support at 2770 and 2765.

E-mini S&P 500 Sep ’18 Daily Chart

E-mini S&P 500 Sep '18 Daily Chart

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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.
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