Equity markets are still heading higher, thanks largely to hopes that China and the US do actually want to do a deal on trade.

It was suggested the US is considering lifting some tariffs on Chinese goods, but as yet it has just been speculation.

It was enough to see a strong close, after a period where stocks have been grinding higher. We are also right in the middle of US earnings seasons and so far markets are responding in a positive fashion.

So far today the ES is up  6.25 points or +0.25%.

Technical Outlook

The SPX is well above the 2600 resistance level for now and we have to assume that we have held this strongly enough. It is now support and the fact that there are no major economic data points means that volatility might well be lower on Friday.

S2 is now 2500, with R1 at the 2700 level.