Negative Action On The Wall Street Open
With no market-moving economic releases hitting news wires this morning, intraday technicals will play a bigger role in dictating today’s price action.
U.S. stocks are falling back to open the holiday week on Wall Street. The DJIA posted a triple-digit loss for the first half-hour of trade, followed by a 15 point selloff in the S&P 500. Investors have been hesitant to enter equities to kick off the abbreviated trading week.
Thursday marks the observation of the Thanksgiving Holiday in the U.S. Be on the lookout for strong participation on Monday, Tuesday, and the first half of the Wednesday session. After about noon EST on Wednesday, U.S. markets will become thin until next Monday’s open.
A Negative Wall Street Open: S&P 500 Technicals
Last Friday, we broke down the action in the December E-mini S&P500 futures contract. The session turned out to be rotational as expected. Thus far today, the technical landscape is shaping up to be very similar.
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At press time, the bears are dominating the action in this market. However, price remains between the Daily SMA and Bollinger MP, indicating neutral sentiment. Here are the levels to watch for the rest of the session:
- Resistance(1): Bollinger MP, 2752.00
- Support(1): Daily SMA, 2714.00
Overview: With no market-moving economic releases hitting news wires this morning, intraday technicals will play a bigger role in dictating today’s price action.
Strong support is present at the Daily SMA, a prime scalping location to the long. For the rest of the session, I will have buys queued up from 2714.25. With an initial stop at 2711.75, this trade produces a tight 8 ticks using a sub-1:1 risk vs reward management plan.
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A sudden bearish sweep rendered this trade ineffective just minutes after the post. In the event price continues to fall beneath the 1214.00 level, it may be a trend day down for the S&P 500. Keep an eye on Friday’s low at 1208.75.
My Apologies! Too many charts open, Friday’s Low in the December E-minis was 2708.75, not 1208.75. Since then fallout has been massive, posting fresh intraday lows at 2686.50.
Price has broken beneath 1208.75. Today is setting up to be a trend day down for U.S. equities. Be on the lookout for a hard test of 25000 in the DJIA.