Slightly Positive Pre-Election Open For U.S. Stocks
Shain Vernier • 1 min read
Election week trading is off and running on Wall Street, with U.S. stocks up moderately and safe-havens near scratch. For the first hour of trade, investors appear to be at ease with staying the course. Both asset classes are rotational on the daily timeframe, illustrating that traders are in wait-and-see ahead of the coming elections.
Earlier, a mixed set of peripheral U.S. economic metrics came in. The Markit PMI Composite (Oct.) was released at 54.9, a bit above September’s figure of 54.8. Also, the ISM Non-Manufacturing Index (Oct.) disappointed, showing a number of 60.3, down from 61.6. These two figures extend the recent trend of ho-hum showings from academic economic reports.
U.S. Stocks On The March?
Both the DJIA and S&P 500 are in the green after 60 minutes of trade. December E-mini DOW futures reflect the action, showing a bullish green candle setting up on the daily chart.
Here are a few resistance levels to watch for the remainder of the day:
- Resistance(1): Bollinger MP, 25381
- Resistance(2): Daily SMA, 25545
Bottom Line: With the U.S. Congressional Midterms due to kick off in a little over 24 hours, the U.S. indices are trading largely in rotation. Look for action to pick up as we roll toward today’s close.
For the rest of the session, I will have sell orders from beneath the Daily SMA in the queue at 25544. With an initial stop at 25600, this trade produces 50 ticks on a sub-1:1 risk vs reward management plan.