Hi there traders, this is Steve Miley for forextraders.com and we’re now going to turn our attention to the equity markets which are very much a big driving force right now for most global markets and also foreign exchange markets.
So, we’re looking at the benchmark index for the US, the S & P 500. We’re looking at the future on the S&P 500 and a very negative theme in here this week – a very negative ISM manufacturing data in here earlier this week saw the initial plunge lower on Wednesday. And then Thursday a WTO group decision regarding US and Europe potentially escalating trade war tensions.
So all of this is being seen as a more “risk-off” scenario. A big sell off this week, and then a spike lower again yesterday on the ISM non manufacturing data as well, down to 2855 – it’s really wiped out a lot of this positivity from the latter September recovery and leaves very much a negative theme going into today and we’re looking for down-side pressures to come back through.
So very much still into “risk-off” scenario going into the US employment report. We’re looking for challenges down to these supports in here down to 2897.75 / 77.5 and maybe back down to 55 / 54.25 targets in here going into today. It’s going to take a push back higher up through 2912.5 / 29.15 Only through there signals a slightly more positive tone for 2927.75.
But our bias lower going into today’s key US employment report.
This has been Steve Miley for forextraders.com.
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Have a great trading day.