Looking Ahead To Next Week’s S&P 500 Open - Forex News by FX Leaders
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Looking Ahead To Next Week’s S&P 500 Open

Posted Friday, May 18, 2018 by
Shain Vernier • 1 min read

It has been a yawner of a Friday on Wall Street. Stocks have traded mixed for most of the session, with the U.S. indices very near flat. While we may be in for a move on today’s close, it appears that the big money has already kicked off their weekend.

Safe-havens have received some attention from bulls today. June gold futures are trading above the 1290.0 handle, up $2.50 on the day.

Taking an open position home over the weekend always carries an added degree of risk. Perhaps the saber-rattling from North Korea earlier in the week has the markets wondering if a another missile test is imminent. At press time, it appears that traders have decided being long gold is ideal going into the 48-hour market close.

S&P 500 Technicals

June E-mini S&P 500 futures have been range bound for the third consecutive session. While it is highly likely to be a losing week for the S&P 500, the gains established in May have been substantial.

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

From a purely technical perspective, I am looking hard at two support and resistance levels:

  • Resistance(1): Swing High, 2741.25
  • Support(1): 38% of Current Wave, 2684.00

Bottom Line: The convergence of the Bollinger MP (2687.00) and 38% Fibonacci retracement (2684.00) have formed a potentially robust support area. Buying into this market from above the 38% retracement at 2685.25 is a solid long entry. With an initial stop at 2674.75, this trade yields 42 ticks using a 1:1 risk vs reward scenario.

Monday’s open is right around the corner and with it will come opportunity. Be sure to take a break and charge up your batteries for a big week on the markets. After all, next week is always the best week!

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About the author

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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