U.S. Stocks Open The Week Flat
Shain Vernier • 2 min read
Following the release of the much anticipated Mueller Report, U.S. stocks have opened the week in the red. For the first half-hour of trade, the DJIA (-85), S&P 500 SPX (-11) and NASDAQ (-45) have posted modest losses. While it is still early, traders and investors don’t seem to be concerned at all about the broader implications of the Mueller Report.
For almost two years, the internal investigation over possible Trump/Russia election collusion has been a hot-button political issue. Now, the Mueller Report has officially dispelled the Trump collusion charges. While there are still some questions regarding obstruction, Trump is claiming total victory on Twitter:
“No collusion, No obstruction, Total EXONERATION! KEEP AMERICA GREAT!”
While optimism from the President is expected, investors aren’t bidding stocks with the same enthusiasm ― at least not yet.
E-mini DOW Futures Continue Friday’s Weakness
June E-mini DOW futures have started the week off in the red, extending losses sustained on Friday.
There are two levels I will be watching for the remainder of the session in the June E-mini DOW:
- Resistance(1): Bollinger MP, 25680
- Support(1): March Low, 25246
Overview: From a fundamental standpoint, U.S. stocks have a lot going for them. The FED is dovish, Trump looks to be in the clear, and a resolution to the U.S./China trade war is rumored to be very close. All in all, there is reason for optimism on Wall Street.
Of course, the markets don’t always behave the way we think they should. The last trading week of March is upon us and stocks are running to the bear, against the fundamentals. The current March low of 25246 is a key level; if it is taken out, we may see a stiff challenge of 25000 in short order. This very well may be the scenario before equities make a sudden reversal and post fresh all-time highs.