Bullish Open For U.S. Stocks - Forex News by FX Leaders
Bulls

Thursday brought a dismal session to U.S. stocks with bearish sentiment dominating trade. This morning’s opening bell has brought a reprieve from the selling, as the DJIA DOW, S&P 500 SPX, and NASDAQ are trying to close the week on a positive note.

It is getting to be old hat, but trade war hysteria continues to be the 5000-pound elephant stomping on stock prices. Going into the Memorial Day weekend, it will be interesting to see if traders go home long or net-flat U.S. stocks.

Durable Goods Fall, U.S Stocks Rally

During the U.S. pre-market hours, the Durable Goods statistics from April hit the newswires. Here is a quick look at the data:

Event                                                                                     Actual      Projected     Previous

Durable Goods Orders (April)                                            -2.1%          -2.0%               1.7%

Durable Goods Orders ex Transportation (April)            0.0%            0.2%             -0.5%

Nondefense Capital Goods Orders ex Aircraft (April)    -0.9%          -0.3%               0.3%

In short, Durable Goods Orders (April) are down across the board. This isn’t a huge deal, but does suggest that U.S. consumption is slowing a bit. Thus far, equities have largely ignored the data.

The NASDAQ Rallies From A Brutal Thursday

Yesterday was a rough session for tech stock bulls. The June E-mini NASDAQ plunged to fresh monthly lows at 7268.00, before posting a modest late-day rebound.

June E-mini NASDAQ Futures (NQ), Daily Chart
June E-mini NASDAQ Futures (NQ), Daily Chart

Overview: At this point, the daily and weekly downtrends in the NASDAQ remain valid. Since last Thursday’s rejection of the macro 62% Retracement (7650.00), the bears have controlled this market. In the event price can’t establish a foothold above the 38% Current Wave Retracement (7410.50), they will very likely continue to do so.

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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.
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