There have been two main catalysts driving equities right now. The first is the continued diplomatic dispute between the United States and Turkey. Trump had announced U.S. import tariffs on steel and aluminum from Turkey doubling the previous tariff to 50% and 20% therefore forcing companies that use Turkish steel to go elsewhere. This economic crisis in Turkey could spread to Europe and other emerging markets causing a spike in interest rates and negatively impacting equities. The second black cloud hanging over the equities is the continued trade dispute the U.S. has with China. On Thursday we saw trade talks reopen and the effects on equities are immediately felt with a 350-point surge in the Dow. Continue to monitor for progress in these two developments which any resolution could cause the next surge in equities. Looking at the S&P 500, resistance is up at the current contract highs of 2860 while support is down at 2800. With this large of a range between support and resistance it may be more beneficial to use options over futures contracts with limited risk.
E-mini S&P 500 Sep ’18 Daily Chart