U.S. And Global Equities: The Bulls Have Control!
Shain Vernier • 1 min read
U.S. stocks have put together a strong session. Thus far the E-mini S&P’s, Dow 30 and NASDAQ 100 are all looking to close trend-day up. This follows suit with the rest of today’s trade of global equities. Rallies have been seen across the board, in France, U.K., Russia, Germany, Denmark, Portugal and Spain.
Rally! Rally! Rally!
Why all of the optimism?!
At first glance, it is perplexing to see today’s rally of pretty much every global equities index. The likely culprit for the strength is a recovery phase in the wake of last week’s Barcelona terror attack. Now that the terror situation is seemingly under control, panic selling has been replaced with bargain hunting.
The rally in U.S. stocks may be attributed in part to President Trump’s address to the country yesterday evening. Amid little fanfare and harsh criticism, the speech outlined an aggressive plan for future U.S. military involvement in Afghanistan.
Going on the military offensive means spending money. As a result, we are seeing defense sector companies perform well today, injecting life into the U.S. markets.
E-Mini S&P 500
Earlier today, I talked about the potential for a bull run in the E-mini S&P 500 futures above last week’s 38% retracement. The call was good, but a pullback never developed for entry. The E-mini S&Ps are currently in a trend day up.
Here are the topside resistance levels I will be watching for the remainder of the session:
50% retracement current wave 2445.00
62% retracement current wave 2451.75
78% retracement current wave 2461.00