U.S. Indices In The Green Ahead Of The FED - Forex News by FX Leaders

U.S. Indices In The Green Ahead Of The FED

Posted Tuesday, December 18, 2018 by
Shain Vernier • 1 min read

Following a negative Monday, the U.S. indices are in the green to kick off the Tuesday pre-FED session. Both the S&P 500 SPX and DJIA are in bullish territory, struggling to close the year on a strong note. For the first hour of trade, the DJIA is up more than 200 points and the S&P 500 is up 14.

The last 6 hours have brought a flurry of Tweets from President Trump, mostly addressing the ongoing Russian collusion investigation. However, one Tweet directly addressed tomorrow’s FED announcements: “I hope the people over at the FED will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Feel the market, don’t just go by meaningless numbers. Good luck!”

S&P 500 Rallies Ahead Of The FED

The equities markets are showing signs of life following the last three bearish sessions. March E-mini S&P 500 futures are off of intraday lows, trading above the 2561.00 level. If the rally continues, then a key Fibonacci resistance level may come into play.

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

Here are the levels to watch in this market for the rest of the session:

  • Resistance(1): 38% Current Wave Retracement, 2593.50
  • Support(1): Psyche Level, 2500.00

Bottom Line: As long as Monday’s low (2533.50) remains intact, I will have sell orders in queue from 2592.75. With an initial stop at 2601.25, this trade produces 25 ticks on a sub 1:1 risk vs reward management plan.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles

Leave a Reply

Notify of