U.S. Indices Fall On Weekly Open

It has been a rough open to the week for the U.S. indices. Values are on the slide for the first half-hour of trade, led by the DJIA DOW (-157), S&P 500 SPX (-17), and NASDAQ (-78). At this point, it appears as though equities players are taking a cautious stance ahead of Jerome Powell’s Congressional testimony.

Today’s U.S. economic calendar is limited, featuring only the U.S. Treasuries auctions and this afternoon’s Consumer Credit Change (May). American consumer debt has been growing at a heavy pace over the past few years and now stands at levels last seen in 2008. While only a secondary metric, there will be more than a few eyes on the Consumer Credit Change, searching for any sign of pending economic doom.

U.S. Indices Open The Week In The Red

Following the U.S. Independence holiday weekend, most American liquidity providers are back at their desks this morning. The result has been negative, as illustrated by the September E-mini DOW chart below.

Here are the levels to watch for the September E-mini DOW as today’s session progresses:

• Resistance(1): Swing High, 26922
• Support(1): 62% Current Wave, 26660
• Support(2): Bollinger MP, 26467

Overview: The name of the game this week is “FED,” led by Jerome Powell’s semiannual testimony before Congress. The event is filled with political grandstanding, but will likely give us an idea of where the FED stands on the state of the U.S. economy. If the testimony does not promote the expected rate cuts or pending economic slowdown, then volatility in the U.S. indices will ensue. 

As we approach Powell’s midweek trip to Capitol Hill, a variety of scenarios will become possible facing the equities and forex markets. Be sure to stay tuned for ideas on how to profit from the action as it unfolds.

ABOUT THE AUTHOR See More

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.

Related Articles

Gold On Fire —$3,500 in Sight After Breakout

7 hours ago

Save

RISC-V Upgrade Incoming? Ethereum Price Prediction Turns Bullish

23 hours ago

Save

Silver Price Bounce—Will $33.65 Be the Next Stop?

1 day ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments