A Flat Week For U.S. Stocks - Forex News by Strategia Forex
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A Flat Week For U.S. Stocks

Posted Friday, September 27, 2019 by
Shain Vernier • 1 min read

This week has been a see-saw affair on Wall Street for U.S. stocks. The lead story driving the choppy price action is the brand-new investigation into U.S. President Trump and impeachment proceedings brought forth by the House of Representatives. As a result, equities players have taken a big step back from risk as the situation evolves.

For Friday’s early action, moderate bids are hitting the market. During the first half-hour of trade, the DJIA DOW (+31), S&P 500 SPX (-1), and NASDAQ (-28) are mixed. Although sentiment is mostly positive, it is better described as “tentative.”

During the U.S. pre-market, Nondefense Capital Goods Orders (August) hit newswires. The number came in surprisingly weak at -0.2%, beneath both expectations and the previous release. While there was a slew of other figures made public this morning, this one was the headliner. Thus far, U.S. stocks have taken a measured response to this negative piece of data.

U.S. Stocks Post A Tight Week Of Action

It has been a tight week for U.S. stocks as trade war optimism has been offset by impeachment angst. The reaction has been predictable as the markets are in a holding pattern, especially December E-mini DOW futures.

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

Overview: For the time being, U.S. stocks are hanging tough in bullish territory. The DOW is above daily support and only about 850 points away from all-time highs. 

In reality, this is a pivotal time for the indices. Prices can go either way ― if impeachment buzz grows, there is likely a correction brewing; if the investigation fizzles, then we will see new all-time highs very soon. Either way, there is a very good chance that some fireworks are in store for October’s kick off on Tuesday.

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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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