U.S. Stocks Rally On Weekly Open - Forex News by FX Leaders
Stocks Could Move This Week

U.S. Stocks Rally On Weekly Open

Posted Monday, June 10, 2019 by
Shain Vernier • 1 min read

U.S. stocks have opened the trading week modestly higher, extending June’s gains. Through the first hour of trade, the DJIA DOW (+168), S&P 500 SPX (+21), and NASDAQ (+112) are all firmly in positive territory.

Today’s U.S. economic calendar is sparsely populated, featuring no market-moving events. At least for the early going, it appears as if “low-rate mania” is once again driving bids to the indices.

DJIA Leads U.S. Stocks Into Bullish Territory

The last week of May and the first week of June produced very different narratives in terms of the U.S. equities markets. Trade war fears dominated late-May trade, while early June has brought expectations of an accommodative FED. The aggregate result has been enhanced volatility and heavy participation across the equities indices.

June E-mini DOW Futures (YM), Daily Chart
June E-mini DOW Futures (YM), Daily Chart

Overview: Don’t look now, but the DJIA is driving toward April’s top of 26694 (not pictured). If we see the June E-mini DOW close above the upper Bollinger Band at 26240 today, then a test of April’s top will become likely by Friday’s closing bell.

As far as U.S. equities go, this week is going to be an extension of the trade war/rate cut debate on Wall Street. The American economic calendar is wide-open until Wednesday’s CPI figures for May. In the event CPI underperforms expectations, concerns surrounding lagging inflation will grow louder. As a result, the hype surrounding a coming series of FED rate cuts will reach a fever-pitch and stocks will be in a position to benefit.

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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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