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