Positive New Year’s Eve Open On Wall Street

Posted Monday, December 31, 2018 by
Shain Vernier • 1 min read

Traders have taken to their screens for the final time in 2018. The result has been a positive Wall Street open, with the U.S. indices in the green during the early going. At least for the moment, sentiment is positive with the new year looming.

Today features a full trading session, with U.S. equities markets scheduled to close at 4 PM EST. However, it is highly likely that participation will drop off as the day progresses. Be on the lookout for thin forex, equities, and futures action as we go deeper into the session.

A Kind Wall Street Open For The S&P 500

Stocks have been brutalized over the course of this December. The fabled Santa Claus rally was a flop and nearly unprecedented volatility became the norm. Perhaps a strong final stanza for 2018 will boost optimism toward March E-mini S&P 500 futures in the new year.

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

Technically speaking, there really isn’t a whole lot to look at on the daily timeframe. Here are two levels I will be watching closely:

  • Resistance(1): Bollinger MP, 2572.00
  • Breakout Point(1): Friday’s Low, 2472.75

Bottom Line: After the past month of losses, it hard not to be skeptical about today’s strong open on Wall Street. In the event sentiment turns negative, being in on an end-of-year mass liquidation isn’t a bad way to play the action.

For the remainder of the session, I will have sells queued up from beneath Friday’s low at 2472.50. With an initial stop at 2476.25, this trade produces 15 ticks on a basic 1:1 risk vs reward management plan.

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