U.S. Indices Open December GAP Up - Forex News by FX Leaders
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U.S. Indices Open December GAP Up

Posted Monday, December 3, 2018 by
Shain Vernier • 1 min read

December has opened with a bang for the U.S. indices. Hints of a coming U.S./China trade deal have investors optimistic about late-2018 equities performance. The S&P 500 and DOW futures opened GAP up, fueled by fresh positive sentiment stemming from the G20. For the first half-hour of trade, the DJIA is up 400 points and the S&P 500 is in the green by 36.

It seems like more often than not, big news hits the wires when the markets are closed. That is exactly what we had last weekend, with negotiations at the G20 bearing significant fruit. If nothing else, talks of a trade deal have injected some much-needed positivity into the U.S. stock market.

U.S. Indices Off And Running For December

December E-mini S&P 500 futures are giving back some of the early gains. As a general rule, GAPs are filled in very quickly. Today’s action may produce a similar scenario, filling in the 2764.00 to 2793.50 area.

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

Overview: At press time, the December E-mini S&Ps are experiencing heavy selling. Rates are falling steadily, driving toward the 2775.00 level. We will see just how committed traders are to filling in the GAP area ― today’s action may be bearish as the markets fully digest the weekend news from the G20.

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About the author

Shain Vernier // 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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