Equity markets look like they are going to be starting the week on the front foot after news today that the US and China are making progress on trade.

President Trump tweeted:

“I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues.”

It now looks like Trump will hold off on increasing the tariffs on existing Chinese exports, which is a positive sign and good first benchmark on the trade deal.

There will be another meeting between the leaders and  

So far today the ES is up 0.3% and drifting higher.

Technical Outlook

The SPX is now getting ready to test the 2800 level and will look to push higher.

The lows of December look a long way away now and the news on trade might be a spark for another leg highs.

As previously mentioned, the round number levels are the major focus at the moment and 2100 is S1 and R2 at 2900.