DJIA, S&P 500 Open Week Lower

It has been a challenging start to the trading week on Wall Street. Through the first 30 minutes of trade, U.S. stocks are mixed, led by losses in the DJIA DOW (-22) and slight gains in the S&P 500 SPX (+5). Sentiment is questionable, even though the Chicago FED National Activity Index (Aug) posted a nice rebound in the premarket hours.

As far as economic reports go, the Chicago FED National Activity Index isn’t a major market mover. However, it is a FED metric; central bankers are surely paying attention in an attempt to gauge aggregate economic conditions. Today’s figure came in at 0.10, up from -0.41 in July. All in all, it is another strong U.S. figure and more evidence that the expected economic slowdown may be delayed even further.

Thus far, the DJIA is discounting the positive news, with sellers dominating the early action.

DJIA Opens Week In The Red

The December E-mini DOW is holding firm in intermediate-term bullish territory. However, things may be ready to change, as prices have fallen beneath the key 27,000 handle.

Here the levels to watch for the remainder of the session:

• Support(1): 38% Current Wave, 26798
• Support(2): Bollinger MP, 26717

Overview: At the moment, the key level to watch for the DJIA and December E-mini DOW is 27000. If we see a reversal from today’s week open, then 27000 will likely set up as support. If not, it is very possible a bearish breakout may develop beneath the 38% Current Wave retracement level at 26798.