Like Bonds, US stocks have continued to forge a pattern of lower highs. Economic uncertainty remains in place because of looming US payrolls but more specifically because of the uncertainty and anti-business track of the EU. Talk that Apple will repatriate significant capital in 2017 might be joined by other companies pulling back money especially from European locations and that might be seen as an ultimate supportive development for US stocks from a merger and acquisition perspective. In the short term stocks probably won’t perform well given the uncertainty of the Fed window especially with a major input for the Fed seen in the Friday morning action.
S&P 500: As mentioned already the E-Mini S&P continues to forge a pattern of lower highs or in some minds a coiling pattern for a major trend decision ahead. Initial support in the September E-Mini S&P today is 2167.25 but to shift the bias up in the market might require a rally back above 2181.50.
Other US Indexes: The Mini-Dow reacted negative to news in the prior trading session and we suspect that part of that weakness was the result of residual spillover from the Apple turmoil. Down trend channel resistance is seen at 18,472 today and that resistance line falls down to 18,371 on Friday. The Mini-Nasdaq generally maintains a bearish fundamental track but a definitive hook up reversal from the Wednesday low on the charts should not be discounted. Down trend channel resistance is seen up at 4795.25 and that might be considered a bull/bear line in the coming trading sessions.
TODAY’S MARKET IDEAS: Stocks are lackluster because of uncertainty in the coming 356 hours of trade but the rejection of the lows yesterday might allow for a temporary bounce before longs square positions ahead of payrolls and the 3 day holiday weekend.