E-mini S&P 500

U.S. Indices Look To Extend Recent Gains

Posted Tuesday, June 11, 2019 by
Shain Vernier • 1 min read

The U.S. indices are off and running, looking to extend the gains of the past six sessions. For the first half-hour of trade, the DJIA DOW (+105), S&P 500 SPX (16.25), and NASDAQ (57.50) are firmly positive. With no primary market movers due out until Wednesday’s CPI report, U.S. equities are in a position to test April’s high by week’s end.

During the U.S. premarket hours, a few secondary inflationary metrics were released to the public. Here are the highlights:

Event                                                                                  Actual      Projected         Previous

Producer Price Index (MoM, May)                                   0.1%            0.1%                 0.2%

Producer Price Index ex Food & Energy (MoM, May)   0.2%           0.2%                  0.1%

This collection of PPI numbers doesn’t tell us much on a month-over-month basis. However, if it is any preview of tomorrow’s U.S. CPI numbers, then inflation will continue to lag FED expectations. At this point, more talk of rate cuts is likely, as is a boost to equities.

U.S. Indices Drive At April’s Highs

The U.S. stock market hasn’t been dull in 2019. Volatility is the new norm and the June E-mini S&P 500 is driving toward the 2950.00 handle.

June E-Mini S&P 500 (SPX), Daily Chart
June E-Mini S&P 500 (SPX), Daily Chart

Here are the levels to watch in this market for the near future:

  • Resistance(1): Swing High, 2961.25
  • Support(1): Bollinger MP, 2842.50
  • Support(2): Daily SMA, 2835.75

Bottom Line: In the event we see the June E-mini S&P 500 extend weekly gains, the value area just beneath the Swing High lends premium short trade location. Accordingly, sells from 2957.25 with an initial stop loss at 2963.25 yield 25 ticks on a slightly sub-1:1 risk vs reward management plan.  

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