Bullish Election Day Open On Wall Street
Shain Vernier • 1 min read
Judging by the early action on Wall Street, investors are expecting today’s elections to wrap up as projected. For the first hour of trade, both the DJIA and S&P 500 are in the green. Gold has fallen to the bear, with WTI crude following suit. If nothing else, traders seem to be unphased by the added political risk election day trading entails.
From a macro standpoint, several factors will be at play for the remainder of the trading day. First, the Congressional Midterm Election and its results. However, the manner in which the voting is conducted is also important. If there appears to be widespread civil unrest or any acts of terror, then these markets will shift on a dime. As always, keeping one eye on a live news feed is not a bad idea.
Election Day Trading: E-mini S&P 500
The December E-mini S&P 500 futures contract is trading slightly higher today on moderately positive sentiment. Thus far, it looks like the markets are expecting a Republican Senate and a Democratic House of Representatives. All in all, relative stability.
Here are the key levels to watch for the remainder of the session:
- Resistance(1): Bollinger MP, 2759.50
- Resistance(2): Daily SMA, 2771.75
- Support(1): 62% Current Wave Retracement (previously resistance), 2739.75
Overview: At press time, the December E-minis are trading in a tight intraday range around the 2745.00 handle. Today’s action will be driven by fundamentals. As long as things appear to be going according to plan, then look for the U.S. indices to grind modestly higher.