U.S. Indices Slide On The Open
The U.S. indices are once again laboring to find solid ground following the Wall Street open. For the first half hour of trade, the DJIA DOW (-395), S&P 500 SPX (-38), and NASDAQ (-115) are firmly in the red. Weak opens have been a common theme throughout May 2019, stemming largely from U.S./China trade war tensions.
However, today’s negative action may also be a result of Wednesday’s FOMC Minutes. Policymakers went on record lauding the wisdom of holding the status-quo and that no Federal Fund Rate cuts are currently on the table. Although not overtly hawkish, these comments are far from “accommodative.”
U.S. Indices Are On The Bear
The daily chart for June E-mini DOW futures gives us a good look at the trouble that this market is in. Following a tight week of action, values have plunged after a failed rally above 38% of May’s Range (25779).
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Overview: It is a full-blown trend day down in the June E-mini DOW. At this juncture, the only real technical support levels on my radar are the big-round-numbers of 25500 and 25000. While this market is certainly capable of a mid-session reversal, the bearish pressure is strong. Given the month-long dedication of equity bears, 25000 appears to be a likely destination for the DJIA in the not too distant future.
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