Negative Action On The Wall Street Open - FX Leaders News
Tug of War between Bulls and Bears - Earnings in Focus

Negative Action On The Wall Street Open

Posted Monday, November 19, 2018 by
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.

December E-mini S&P 500 Futures (ES), Daily Chart
December E-mini S&P 500 Futures (ES), Daily Chart

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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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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