S&P 500 futures are up by 0.25%
But there's a feeling this is more of a false dawn more than anything else. European traders are yet to have their say and if yesterday's price action is to go by, E-minis will start to shave off those early gains in the next few hours.
The S&P 500 suffered a 3.09% drop in overnight trading, virtually erasing all of this year's gains as the index turns 0.65% in the red for 2018.
This comes after the fact that the index posted two consecutive daily closes below the 200-day MA (blue line) for the first time since early 2016. Back in January 2016 when the index experienced a similar technical break, it precipitated a drop of more than 12% in US stocks.
Watch out for that 2,600 handle in trading later today. The retracement here has been a long time coming for US equities and the pain yesterday may yet be a sign of more to come over the next few sessions.
Fundamentally, earnings and the US economy is still doing great. But in times like this, fear trumps everything else.
