U.S. Housing Data Mixed, Indices Open In The Green

Posted Wednesday, May 16, 2018 by
Shain Vernier • 2 min read

It has been a muted Wednesday open on Wall Street for the U.S. indices. About an hour into trade, the DJIA is up 25 points and the S&P 500 six. New threats from North Korea on backing out of next month’s summit with the U.S. are coming across the newswires. While the rhetoric is not creating chaos on the markets, it is a reminder of just how fickle global diplomacy can be.

U.S. Housing Data

In the U.S. pre-market hours, several metrics facing the U.S. real estate industry were released. Building Permits (MoM, April) came in down 1.8% from the previous release, but still ahead of projections. Housing Starts fell by 3.7% in April, coming in well beneath consensus estimates.

Real estate is a primary metric facing the U.S. economy and monetary policy. As FED policy tightens, it is customary for new construction to drop off considerably. It will be interesting to observe the construction industry as the FED begins to raise rates more aggressively.

E-mini S&P 500

The S&P 500 is trading moderately to the bull thus far today. From a technical perspective, there is a defined area of support set up on the daily time frame.

June E-mini S&P 500 Futures (ES), Daily Chart

Here are a few downside support levels to watch for the remainder of today’s session:

  • Support(1): 38% Current Wave, 2684.00
  • Support(2): Bollinger MP, 2680.50
  • Support(3): Daily SMA, 2659.00

Overview: Using the daily chart, the recent bull run in the S&P 500 is still technically valid. Price has not violated the 38% retracement level at 2684.00. Until it does, my bias will remain to the bullish side of things.

At press time, the S&P 500 is gaining back some of Tuesday’s losses. In the event that we see a tight daily trading range, a buy from support will be in play for Thursday’s session.

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