Negative Action On The Wall Street Open
Shain Vernier • 1 min read
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.
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.