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U.S. Equities Open And Key Technical Level

Shain Vernier•Thursday, August 17, 2017•2 min read

Yesterday’s much-anticipated FOMC minutes release has come and gone. U.S. equities remain strong despite the hints at a coming policy shift from the FED. For traders of U.S. equities indices, the next month will be critical to our long-term view of these markets.

 

More Numbers From The FED

Just when you thought that the FED was done giving their 2 cents, they throw in another nickel. Today brings several more official FED numbers:

Event                                                                     Previous       Projected           Actual

Philadelphia Fed Manufacturing Survey (Aug)          19.5                18.5                 18.9

Capacity Utilization (July)                                          76.7%            76.7%             76.7%

Industrial Production (MoM, July)                               0.4%               0.3%               0.2%                          

These stats are metrics developed by the U.S. Federal Reserve Board itself. In my opinion, they are relatively abstract. But, long-term equities investors will be paying attention and they are capable of driving the market.

 

U.S. Equities

As I have mentioned in earlier posts, the E-mini S&P 500 futures contract is a great barometer of the U.S. equities markets. When it tanks investors are running for the hills.

Emini Daily chartE-mini S&P 500 Daily Chart- Pivotal Area

For now, the E-minis look to have gained back much of what was lost last week during the U.S./North Korea panic selloff. However, it is in a pivotal technical area:

  • On the daily chart we are trading between the 13-Day SMA and the Bollinger midpoint. A signal of compression.

  • Trade is below Wednesday’s session low of 2461.25

  • 38% of the sell off recovery is at 2457.25

Bottom Line: Today’s cash open at 9:30 AM EST will tell us a lot about U.S. equities. If you are trading E-Mini S&P futures, keep a close eye on 2457.25. If you are trading the SPX500 CFD contract, the chart pattern is very similar. 38% of the rally from last week’s low is a key level for today’s trade.

I will be looking for a test of the 38% level and intraday compression on the 30 and 60-minute charts. If price trades below this level, a short day trade is the play. Check back a bit later on in the U.S. session for a play-by-play for the trade.

 
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ABOUT THE AUTHOR See More
Shain Vernier
US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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