Equity markets drifted higher overnight, but in the back of most traders minds is still the impact of the US-China trade talks.

This week, the US and China will meet to discuss the trade deal, which has a deadline of March 1.

The concerns are still that there is significant downside risk should a deal not be struck between the two parties. From the markets perspective, many had probably felt that the issues would resolve themselves quickly, but given the complex and wide ranging negitionations, it appears likely that a 90-day deadline is simply too tight.

So far today the ES is up 0.2% and is drifting higher today.

Technical Outlook

Little has changed since yesterday and the SPX is still holding above the 2700 level.

As previously mentioned, the round number levels are the major focus at the moment and 2600 is S2.