Equity markets drifted higher overnight as the optimism around trade talks continues to build up. There have also been other reports that US President Trump is likely to sign a deal that would keep the Government open past the Friday deadline.

This week, the US and China will meet to discuss the trade deal, which has an upcoming deadline of March 1. However, the President suggested that he would be prepared to push this back if the negotiations are moving along in a constructive manner.

There were considerable concerns earlier in the week, but those fears have eased somewhat.

Today we get US PPI and Retail Sales, which will be a good indicator of how things are going. Particularly retail sales after the holiday period in December.

So far today the ES is up 0.03% so virtually unchanged.

Technical Outlook

The SPX is still holding above the 2700 level and since the trade updates, has rallied back above the 2750 mark.

As previously mentioned, the round number levels are the major focus at the moment and 2600 is S2 and R2 at 2800.