RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

S&P futures are looking at a weak opening Thursday as investors wait for more earnings, and any news on the U.S. central bank. The market is showing a fresh downside extension to the lowest level in four sessions. It would appear that investors are banking some profits ahead of the tax reform plan, which has generally been altered to be less favorable to growth. This is because of short-term benefits combined with what appears to be a longer term tax hike. Other issues negatively impacting the equity market this week are possible price-fixing threats against drug companies, intense scrutiny of social media platform companies, and noted weakness in bellwether Tesla shares.

As previously mentioned, the December S&P has displayed negative overnight chart action from Wednesday to Thursday, but it also seems as if the index rejected that four day downside breakout. It is possible that the e-mini S&P will attempt to buy the rumor ahead of the tax reform release, and it is also possible that the index will receive a minimal benefit if the appointment to the Fed is Jerome Powell. However, we would suggest that the rally of the last seven sessions has factored in a dovish Fed chairman and something pro-growth from tax reform. 

 

Dec ’17 Emini S&P Daily Chart

Dec '17 Emini S&P Daily Chart

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Jeff Yasak

Senior Market Strategist
Since leaving the corporate world in 1995, Jeff has established a name for himself as a trusted financial advisor and trading advocate—leveraging his studies in finance from the University of Wisconsin-Madison and Loyola University, 25+ years of experience, and a passion for the industry to guide both novice and experienced traders in pursuit of achieving their own financial reward. Jeff began his career as a clerk in the S&P 500 pit at the Chicago Mercantile Exchange—fostering a deep interest in the options market that eventually drove him into the retail futures sector where he spent several years as a broker’s assistant before taking on clients of his own. Operating at the intersection of strategy and success, Jeff seeks to establish meaningful relationships with clients—synthesizing financial data and offering timely insight that informs critical decision-making surrounding money management and trading activities. Well-versed in the futures, securities, equities, and indices markets, Jeff is uniquely positioned to direct his clients to success. With a carefully cultivated combination of experience and expertise, he is able to connect with clients to better understand their goals and offer sound financial guidance that delivers notable bottom-line results.
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