U.S. Indices Open Higher, Look To Rebound

Following a negative Thursday session, the U.S. indices are looking to regain their swagger going into the Labor Day weekend. For the first hour of trade since the Wall Street open, both the DJIA and S&P 500 are up slightly. A bullish bias is creeping into the intraday action after a strong reading from this morning’s Michigan Consumer Sentiment Index. The number came in at 96.2, above projections of 95.5.

Although a largely arbitrary metric, the Michigan Consumer Sentiment Index does have some influence on the U.S. markets. It is listed as a secondary market mover but does shed some light on consumer activity. Since it’s 10:00 AM EST release, the September E-mini S&P 500 has pushed session highs and is trending north above the 2900.00 handle.

U.S. Indices Breakdown: September E-mini S&P 500 Futures

Sometimes an economic release can make all of the difference. The 30-minute price bar for September E-mini S&P 500 futures spiked north 28 ticks immediately following the Michigan Sentiment Index release. It appears that traders were looking for any good news to bid.

For the rest of the trading day, here are the key levels for this market:

• Resistance(1): All-Time High, 2917.50
• Two-Way Catalyst: Psyche level, 2900.00
• Support(1): 38% Retracement, 2890.25

Bottom Line: During Thursday’s sell-off, price remained above the 38% retracement of the current wave. This is an important technical characteristic and one the preserves my bullish bias. For the rest of the trading day, I will be scalping downside support from just above the 38% retracement level (2890.25).

Buys from 2890.50 will produce 8-12 ticks using a tight 1:1 risk vs reward ratio. This is a quick hitter — immediate and positive price action upon entry is the goal.

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.

Related Articles

Ethereum Price Prediction Soars—$265M Liquidated, ETH Hits $2,331

2 days ago

Save

Silver Eyes $33.24 Breakout as U.S.-China Trade Talks Heat Up

2 days ago

Save

Oil Prices Eye $62 as U.S.-China Tariff Talks Boost Sentiment

2 days ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments