E-mini S&P

This marks the S&P 500 fourth straight session and more impressively the NASDAQ’s ninth with record overnight highs. The combination of central bank liquidity, ultra-low/negative rates, lack of negative news and a warrior of a U.S consumer has fueled this market in recent days.
 It’s Jobs Friday and Nonfarm Payroll strong at 225,000. U.S benchmarks are incurring a healthy downtick ahead of the report. Some selling pressures are due to the mounting Coronavirus numbers, but others come as Germany’s economic data echoes a recession.
Stocks around the world are rallying sharply as the People’s Bank of China’s injected another $60 billion in liquidity. All major U.S benchmarks have gained at least 1%. China’s Shanghai Composite finished up 1.34%, a day after opening for the first time in a week and plunging 7.72%.
U.S benchmarks began Sunday night on favorable footing and are working to repair last week’s damage. Benchmarks from China are a different story. After being closed all last week for the Lunar New Year holiday, the Shanghai Composite finished down 7.72% Monday.
U.S benchmarks are ping-ponging between technical levels. Investors and traders alike are showing caution awaiting further developments on the Coronavirus and it’s too soon to know the impact. We mentioned here yesterday that China accounted for one-third of the world’s GDP in 2019.
U.S benchmarks are consolidating lower in a healthy manner. The slightest signs of exhaustion crept into the market Friday with the Russell 2000 small-cap index finishing 1% from a new swing high achieved on the opening bell.
The U.S-Iran situation has deescalated, top Chinese negotiator Liu He is set to visit Washington next week to sign the “Phase One” trade deal, the Fed thwarted a liquidity crisis and earnings are right around the corner.
Iran launched more than a dozen ballistic missiles at two U.S-Iraqi airbases in retaliation for the killing of Soleimani. Fear and uncertainty immediately rattled through markets and the S&P lost 1.7% down to a low of 3181, tagging a critical level of support.
 U.S benchmarks shook off Middle East tensions and surged higher on the opening bell yesterday. The S&P turned positive by noon and extended gains into the close.
U.S benchmarks are set to open lower due to mounting uncertainties in the Middle East. Price action digested the killing of Iranian General Soleimani Friday and quickly recovered from session lows despite Iran’s promise to retaliate.