Looking Ahead To Next Week’s S&P 500 Open
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.
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!