Equity futures are trading higher this morning as Europe is up by nearly 1.5%. But early resistance is keep the S&P 500 (NYSEARCA:SPY) in check.
Trends across the broad U.S. equity market indices remain neutral to lower for Europe and the US. The recent rally has S&P 500 prices nearly unchanged from last week.
Bulls are trying to neutralize the selling…
Bond yields are pressing higher while the US Dollar is down over .50, as the Euro bounces higher.
KEY investing news in the last 24 hours centered on European Central Bank members saying interest rates hikes may come earlier than next December (which is what market had priced in). Note Draghi is set to step down next October. So we very well could see rates hiked in September or October ahead of schedule to help Draghi reverse rates to end his tenure.
This US Dollar decline is helping Emerging market currencies stage a larger than average bounce when looking at the Turkish Lira, Hungarian Forint, South African Rand, and Polish Zloty.
Further Dollar weakness in the days ahead looks likely and might help this bounce extend more into mid-month in Emerging markets overall after recent weakness
S&P 500 Futures Trading Chart
The hourly chart of the S&P 500 is showing the rangebound nature of the past week. And while today’s sharp pre-market gains have largely recouped Tuesday’s weakness, the broader channel remains NEUTRAL from June 25th.
Key price resistance lies at 2747, which marked peaks in the S&PÂ on Tuesday, last Friday, and last Wednesday. Trade safe.
Twitter: Â @MarkNewtonCMT
Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
