Stock markets have given back all the gains today

U.S. Markets Challenge Bullish Trend On The Open

Posted Friday, November 9, 2018 by
Shain Vernier • 1 min read

The U.S. markets have opened soft as this charged week of trading draws to a close. For the first hour of trade, the DJIA and S&P 500 are in the red. Equities traders appear to be taking weekly profits and limiting risk going into the two-day break. At press time, the DJIA is leading the charge south, posting a 170 point loss.

Selling Dominates U.S. Markets On The Open

While weakness in commodities is the big story this morning, the sliding U.S. indices are getting some attention. Thursday, the FED reinforced its plans for extended tightening toward the USD. In addition, recent news reports are touting concerns over tax rollbacks and the elimination of future tax cuts due to the newly Democratic House of Representatives. Add it all up, and the December E-mini DOW is headed down.

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

Thursday’s post-election session in the December E-mini DOW formed a doji candlestick on the daily time frame. This is significant, in that it is a traditional signal of pending market reversal.

Overview: The DJIA made great strides last week, putting a dent into the losses of October. From a practical standpoint, there is much to cheer about for equities bulls. In the event that we see further selling toward today’s close and after Monday’s open, a buying opportunity from daily support (25550-25450) may become available.

All week long, the world has been watching the DJIA closely for signs of trend fatigue. Subsequently, U.S. stocks performed exceptionally well in the wake of political uncertainty. Although being challenged today, the two-year uptrend in equities remains intact.

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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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