U.S. Stocks Continue To Lag
It has been a trend day down for March E-mini NASDAQ futures. Sellers have dominated the action, sending price beneath Friday’s low.
With only three sessions left in January, U.S. stocks are showing considerable weakness. It has certainly been a strong month of returns for the equity indices. However, with earnings season, political unrest in Washington D.C., and a coming FED policy meeting, equities are under considerable pressure. Is this the beginning of a long-term correction?
From a fundamental standpoint, the consensus expects the FED to hold rates static and proceed with the newly adopted “flexible” policy. In fact, most financial pundits anticipate rates to remain unchanged until June at the earliest. This will be welcomed news for stock market bulls, as the rate tightening of late last year brought considerable volatility to the markets.
March E-mini NASDAQ Futures: Technical Outlook
It has been a trend day down for March E-mini NASDAQ futures. Sellers have dominated the action consistently, sending price beneath Friday’s low. Now, the key 78% Fibonacci level that once acted as strong resistance is being challenged as downside support.
++1_28_2019.jpg)
Here are a few levels of support to watch ahead of today’s closing bell:
- Support(1): 78% Current Wave Retracement, 6660.25
- Support(2): Bollinger MP, 6617.25
- Support(3): Daily SMA, 6470.50
Overview: Conventional wisdom suggested that the U.S. government shutdown ending would be a good thing for the markets. This has not been the case, as the major stock indices have surrendered marketshare throughout the session.
Today’s sell-off may be a precursor to coming weakness in U.S. stocks. It appears that Q1 GDP is set up to lag, as are other growth metrics. While the FED is not likely to make any waves this week, eventually rate hikes will be back on the table. If today’s action is any indication, traders may be reducing risk exposure in anticipation of the global economic slowdown due to begin later in 2019.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals