U.S. Indices Kickoff The Week In The Red

Posted Monday, October 8, 2018 by
Shain Vernier • 1 min read

Bond yields continue to dominate financial headlines as the second trading week of October gets underway. The U.S. indices are struggling, with both the DJIA and SP&500 in the red for the first hour of trade. The sentiment is moderately negative, with investors treading with caution early on.

Today’s economic calendar is wide open. No primary market movers are scheduled, but all eyes will be on tomorrow’s short-term T-bill auctions. Growing yields are becoming a concern for equities players ― will we see another spike in bond pricing tomorrow?

A Look At The U.S. Indices

Since last week’s fresh all-time highs, the DJIA has been struggling. Three consecutive negative sessions have brought several technical support areas into play.

December E-mini DOW Futures (YM), Daily Chart
December E-mini DOW Futures (YM), Daily Chart

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

  • Support(1): Bollinger MP, 26378
  • Support(2): Daily SMA, 26315

Overview: At the moment, it looks like the Bollinger MP may prove to be valid downside support. Buyers have stepped in and defended the 26300 handle, driving prices north 100 ticks. It appears that pricing of the E-mini DOW is seeking a level near the 26500 area.

No primary market movers are scheduled until Thursday’s CPI report. The numbers are expected to increase over the previous release as strong economic conditions will drive inflation. Only time will tell, but it the FED is going to have a rock-solid case for raising rates, which may bring the equities bears out of hibernation.

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About the author

Shain Vernier is our 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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