Negative Post-Holiday Open For U.S. Stocks - Forex News by FX Leaders

Negative Post-Holiday Open For U.S. Stocks

Posted Tuesday, September 3, 2019 by
Shain Vernier • 1 min read

U.S. stocks have opened trade deep in the red amid the new U.S. and China tariffs going into effect. The DJIA DOW (-265), S&P 500 SPX (-16), and NASDAQ (-34) are all trending south during early-session action. It appears that institutional money didn’t like what it saw over the Labor Day holiday weekend. Risk is being taken off the table, a trend that may intensify as September wears on.

The U.S. pre-market economic calendar was vacant, with several releases on tap for later today. Headlining the group is the ISM Manufacturing PMI (August) at 10:00 AM EST. Other than that, investors will be watching today’s 3 and 6-Month T-bill auctions closely at 11:30 AM EST.

U.S. Stocks In The Red To Kick Off September

Contrary to the early bearish action in U.S. stocks, the September E-mini S&P 500 posted a green daily candle coming into the opening bell. However, don’t be fooled ― this is a result of yesterday’s halted open and the CME’s accounting practices.

September E-mini S&P 500 Futures (ES), Daily Chart Stocks
September E-mini S&P 500 Futures (ES), Daily Chart

Here are the levels to watch for today’s September E-mini S&Ps:

  • Resistance(1): Macro 62% Retracement, 2932.50
  • Support(1): Bollinger MP, 2908.50 
  • Support(2): Daily SMA, 2890.75

Overview: For the time being, it may be best to let the markets stabilize a bit before jumping in with both feet. Institutional capital is back in the game today, which will reduce the validity of yesterday’s range and related technicals. All in all, taking it easy in U.S. stocks isn’t a terrible way to trade the post-holiday action.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
The ECB kept rates on hold again, but the statement seemed pretty dovish in the long run for the Euro
2 hours ago
Comments

Leave a Reply

avatar
  Subscribe  
Notify of