Weekly Trade Kicks Off On Wall Street - Forex News by FX Leaders
Stocks

Weekly Trade Kicks Off On Wall Street

Posted Monday, January 7, 2019 by
Shain Vernier • 1 min read

Amid a wide-open early week economic calendar, trade has resumed on Wall Street. The initial sessions of 2019 brought volatility in buckets, with the U.S. indices closing on a high note last Friday. Investors appear to be taking a cautious stance thus far, with muted trade being on display for the S&P 500 SPX, DJIA, and NASDAQ.

A few minutes ago, two peripheral economic numbers were released to the public. The ISM Non-Manufacturing PMI (Dec.) came beneath expectations at 57.6. Factory Orders (MoM, Nov.) missed projections at 0.3%, but outperformed October’s figure. At the moment, these stats do not seem to be impacting the trade of U.S. stocks.

Wall Street Is Open For Business

Mondays always present a challenge, as we do not really know what to expect coming out of the weekend break. Today is no different, with the March E-mini S&P 500 futures contract trading in tight consolidation.

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

There are two levels worth noting as the day progresses:

  • Resistance(1): Bollinger MP, 2550.50
  • Support(1): 38% Current Wave Retracement, 2509.50

Bottom Line: The daily chart for the March E-mini S&Ps gives us a classic example of one-time resistance levels becoming eventual support. For the rest of the session, I will have buy orders queued up from above the 38% Current Wave Retracement at 2510.25. With an initial stop at 2504.75, this trade produces 22 ticks on a standard 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
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments