U.S. Stocks Open Positive, Key Levels For The S&P 500

Posted Tuesday, June 26, 2018 by
Shain Vernier • 1 min read

The U.S. indices have opened Tuesday’s trade slightly in the green. After a massive Monday sell-off, traders are reevaluating the markets and appear to be at ease with holding stocks. For the first hour of business on Wall Street, the DJIA is up 40 points and the S&P 500 is in the green moderately.

Earlier, the S&P/Case-Shiller Home Price Index (YoY, April) was released to the public. Although a secondary metric, it does give us an idea of how home pricing is responding to evolving economic conditions. The report came in at 6.6%, below expectations of 6.8%. In addition, the Richmond FED Manufacturing Index (June) outperformed expectations, keeping with the trend of strong data from the manufacturing sector.

Other than those two items, the economic calendar for Tuesday’s session is wide open.

S&P 500 Technicals

September E-mini S&P 500 futures took a nosedive on Monday, making a run at May’s lows. Can investors stop the bleeding ahead of Thursday’s U.S. GDP report?

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

Here are the levels to watch for the remainder of the Tuesday session:

  • Resistance(1): 38% Current Wave Retracement, 2737.00
  • Resistance(2): Bollinger MP, 2748.50
  • Resistance(3): Daily SMA, 2754.00

Bottom Line: By studying the daily chart for the September E-mini S&Ps, it is not difficult to spot the prevailing bearish trend. A sell from just beneath the 38% Fibonacci retracement is a good way to join the action to the short.

Sells from 2736.25 with an initial stop loss at 2750.25 offer good trade location to the bear. Using a 1:1 risk vs reward plan, this trade setup yields 54 ticks. In the event the recommendation goes live today, be sure to check out the Comments section below for ideas on how to maximize profits while limiting risk.

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