S&P 500 And DJIA Look To End October With A Bang
Shain Vernier • 1 min read
The final trading day of October has started with a bang for the U.S. indices. Both the DJIA and S&P 500 are in the green, posting nice gains for the second-consecutive Wall Street open. Values have challenged several topside resistance levels as monthly losses are being pared.
During the U.S. pre-market hours, a few economic metrics were released to the public. Another strong ADP Employment (Oct.) report grabbed headlines as 227,000 jobs were created last month. On the flip side, the Chicago PMI (Oct.) came in under projections, falling to a six-month low.
S&P 500 Technical Outlook
At least for the first hour of trade on Wall Street, it appears that investors are more interested in the ADP Employment number than the lagging Chicago PMI. Bids are hitting the December E-mini S&P 500, driving values north toward the 2750.00 handle.
Here are few topside resistance levels to watch for the rest of the session:
- Resistance(1): 62% Current Wave Retracement, 2739.75
- Resistance(2): Bollinger MP, 2769.75
- Resistance(3): Daily SMA, 2828.25
Overview: Important dates on the calendar often stimulate action in the markets. The final trading day of the week, month, or year can be a catalyst for large moves. This is due to the accounting needs of institutional money, specifically strategy implementation from hedge funds.
For the rest of today, it will be interesting to see if the U.S. indices continue the rally. Both the DJIA and S&P 500 are challenging the prevailing downtrend with vigor. If we see continued strength and a strong close, these markets will likely show strength going into next Tuesday’s U.S. Congressional Midterm Elections.