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
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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