It has been a negative open to the trading week for U.S. stocks. A triple-digit drop in the Dow Jones Industrial Average (DJIA) has been the early story, with losses in the S&P 500 SPX and NASDAQ following close behind. As of now, the positive sentiment of last week is fading quickly. Stocks have given back a large portion of early April’s gains on a considerable two-session retrace.

On the news front, today features a wide-open U.S. economic calendar. A few minutes ago, U.S. Factory Orders (MoM, Feb.) were released to the public. The figure came in at (-0.5%), slightly outperforming projections of (-0.6%). Today’s Factory Orders report is not a primary market mover; however, it is negative and suggests that consumption is tapering a bit from previous levels.

U.S. Stocks Backpedal To Open The Week

Since last Friday’s strong Wall Street open, U.S. stocks have been rotating to the bear. June E-mini DOW futures are certainly echoing the weakness, falling toward the 26000 handle.

Here are two levels to watch for the near future session:

• Resistance(1): Psyche Level, 26500
• Support(1): 38% Current Wave, 26077

Bottom Line: The intermediate-term bullish trend in the DJIA remains valid. At this point, buying dips is a viable plan for trading the action. As long as the Psyche Level (26500) remains the high water mark for the June E-mini DOW, buying from 26086 is good trade location to the long. With an initial stop at 26044, this trade produces 40 ticks on a slightly sub-1:1 risk vs reward ratio.